Exam 9: Reporting and Analyzing Current Liabilities

______________________ is the total compensation an employee earns including wages,salaries,commissions,bonuses and any compensation earned before deductions such as taxes.

If Steve Company paid $820,000 in bonuses,and net income before bonus was $3,850,000,what was the bonus percentage offered to the employees during 2010?

A special bank account used solely for the purpose of paying employees,is created by depositing the amount of each employees' net pay into the account every pay period.This account is referred to as a(n):

Trade accounts payable are amounts owed to suppliers for products or services purchased on credit.

A company sells computers at a selling price of $1,800 each.Each computer has a 2 year warranty that covers replacement of defective parts.It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $150 each.During November,the company sold 30,000 computers and 400 computers were serviced under the warranty during November at a total cost of $55,000.The balance in the Estimated Warranty Liability account at November 1 was $29,000.What is the company's warranty expense for the month of November?

An employer's federal unemployment taxes (FUTA)are reported:

A ________________________ is a potential obligation arising from a past transaction or event that depends on a future event.

The payroll records of a company provided the following data for the currently weekly pay period ended March 7. Assume that the Social Security portion of the FICA taxes is 6.2% on the first $106,800 and the Medicare portion is 1.45% of all wages paid to each employee for this pay period.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee. Calculate the net pay for each employee.

A liability does not exist if there is any uncertainty about whom to pay,when to pay or how much to pay.

Conner Company borrows $185,600 cash on November 1,2010,by signing a 120-day,8% note.What is the total amount of interest expense that Conner will recognize?

A payroll register is a cumulative record of an employee's hours worked,gross earnings,deductions and net pay.

To compute the amount of tax withheld from an employee's pay,employers can use a _______________________________________________________ table.

Employee vacation benefits:

The state unemployment tax rates applied to an employer are adjusted according to an employer's merit rating.

The times interest earned ratio reflects:

Apple Company has three employees: Gross Pay through July Gross Pay for August Happy \ 4,120 Doc 31,100 5,600 White 14,700 $\text { The company is subject to the following taxes }$ Tax Rate Applied To FICA-Social Security 6.20\% First \ 106,800 FICA-Medicare 1.45 All grosspay FUTA .80 First \ 7,000 SUTA 5.40 First \ 7,000 What is the amount that Apple Company will record as total payroll taxes for August?

Times interest earned ratio is computed by dividing _______________ by interest expense.

A note payable can be used to extend the payment due on an account payable.

Each employee records the number of withholding allowances claimed on form W-4,the withholding allowance certificate that is filed with the employer.