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