Singer and mcmann are partners in a business singers

Reference no: EM13573959

1.According to a summary of the payroll of Scotland Company, $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued payroll taxes would include:

a debit to SUTA Payable of $630
a debit to SUTA Payable of $18,900
a credit to SUTA Payable of $630
a credit to SUTA Payable of $18,900

2.Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $60,000 and $40,000 respectively. Ramsey is admitted to the partnership and is given a 10% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?

$44,800
$35,200
$20,000
$16,000

3.A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is

debit Cash, $6,120; credit Notes Receivable, $6,120
debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; Credit Interest Receivable, $120
debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060
debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; Credit Interest Revenue, $120

4. On October 30, Seba Salon, Inc. issued a 90-day note with a face amount of $60,000 to Reyes Products, Inc. for merchandise inventory. Assuming a 360-day year, determine the proceeds of the note assuming the note is discounted at 8%.

$55,200
$64,800
$58,800
$61,200

5. Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann respectively and 10% interest on original capital. If they agree to share remaining profits and losses on a 3:2 ratio, what will Singer's share of the income (loss) be if the net loss for the year was $10,000?

($12,600)
($14,000)
($6,000)
($10,000)

Reference no: EM13573959

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