ACCT 551 help A Guide to career/uophelp.com ACCT 551 help A Guide to career/uophelp.com | Page 10

certain employees. The amount paid to employees in excess of $7,000
was $720,000. Income taxes withheld were $225,000. The state
unemployment tax is 1.2%, the federal unemployment tax is .8%, and
the FICA tax is 7.65% on an employee’s wages to $100,000 and 1.45%
in excess of $100,000.
(a) Prepare the journal entry for the wages and salaries paid.
(b) Prepare the entry to record the employer payroll taxes. (Points : 30)
Question 3. 3. (TCO D) On January 1, 2010, Solis Co. issued its 10%
bonds in the face amount of $3,000,000, which mature on January 1,
2020. The bonds were issued for $3,405,000 to yield 8%, resulting in
bond premium of $405,000. Solis uses the effective-interest method of
amortizing bond premium. Interest is payable annually on December 31.
At December 31, 2010, Solis's adjusted unamortized bond premium is
what amount? Please show computations. (Points : 35)
Question 4. 4.
(TCO E) The original sale of the 450 par-value common shares of Gray
Company was recorded as follows:
Record the treasury stock transactions (given below) under the cost
method.
Transactions:
(a) Bought 300 shares of common stock as treasury shares at $62
(b) Sold 80 shares of treasury stock at $60
(c) Sold four treasury shares at $68
(Points : 30)