120. For the week ended June 30, year 1, Free Co. paid gross wages of $ 20,000, from which federal income taxes of $ 2,500 and FICA were withheld. All wages paid were subject to FICA tax rates of 7 % each for employer and employee. Free makes all payroll-related disbursements from a special payroll checking account. What amount should Free have deposited in the payroll checking account to cover net payroll and related payroll taxes for the week ended June 30, year 1?
121. A company receives an advance payment for special-order goods that are to be manufactured and delivered within 6 months. The advance payment should be reported in the company’ s balance sheet as a
122. On December 31, year 1, Key Co. received two $ 10,000 noninterest-bearing notes from customers in exchange for services rendered. The note from Alpha Co., which is due in nine months, was made under customary trade terms, but the note from Omega Co., which is due in two years, was not. The market interest rate for both notes at the date of issuance is 8 %. The present value of $ 1 due in nine months at 8 % is. 944. The present value of $ 1 due in two years at 8 % is. 857. At what amounts should these two notes receivable be reported in Key’ s December 31, year 1 balance sheet?
123. On January 1, year 2, Battle Corporation sold at 97 plus accrued interest 200 of its 8 %, $ 1,000 bonds. The bonds are dated October 1, year 1, and mature on October 1, year 12. Interest is payable semiannually on April 1 and October 1. Accrued interest for the period October 1, year 1, to January 1, year 2 amounted to $ 4,000. As a result on January 1, year 2, Battle would record bonds payable, net of discount, at
124. Jackson Corporation provides an incentive compensation plan under which its president is to receive a bonus equal to 10 % of Jackson’ s income in excess of $ 100,000 before deducting income tax