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 .
3 . ( TCO D ) Hurst , Incorporated sold its 8 % bonds with a maturity value of $ 3,000,000 on August 1 , 2009 for $ 2,946,000 . At the time of the sale , the bonds had 5 years until they reached maturity . Interest on the bonds is payable semiannually on August 1 and February 1 . The bonds are callable at 104 at any time after August 1 , 2011 . By October 1 , 2011 , the market rate of interest has declined and the market price of Hurst ' s bonds has risen to a price of 101 . The firm decides to refund the bonds by selling a new 6 % bond issue to mature in 5 years . Hurst begins to reacquire its 8 % bonds in the market and is able to purchase $ 500,000 worth at 101 . The remainder of the outstanding bonds is reacquired by exercising the bonds ' call feature . In the final analysis , how much was the gain or loss experienced by Hurst in reacquiring its 8 % bonds ? ( Assume the firm used straight-line amortization .) Show calculations .
4 . ( TCO E ) Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $ 72,000 cash . Instructions : ( a ) Give the entry for the issuance , assuming the par value of the common was $ 5 and the market value $ 30 , and the par value of the preferred was $ 40 and the market value $ 50 . ( Each valuation is on a pershare basis and there are ready markets for each stock .) ( b ) Give the entry for the issuance assuming the same facts as ( a ) above except the preferred stock has no ready market value , and the common stock has a market value of $ 25 per share .
5 . ( TCO F ) Describe the journal entry for a stock dividend on common stock ( which has a par value )
6 . ( TCO A ) At December 31 , 2010 , Kifer Company had 500,000 shares of common stock outstanding . On October 1 , 2011 , an additional