I really need help please !!!!!!!!!!!!!
1. Accounting for payroll. Jimmy Paycheck earned $1,500 per month as the manager of a recording studio. Jimmy has 25% of his earning withheld for federal income taxes. There are no other amounts withheld except for those required by the federal government. What are the other amounts that must be deducted from Jimmy’s earnings? Calculate the net amount Jimmy will receive on his next paycheck.
2. Account for warranties. Key Company offers a three-year warranty on its premium door locks. During the year, the company had sales of $100,000. Related to the sales, warranty costs should be approximately $3,000 per year. How much warranty expense related to these sales will Key Company’s income statement show in the year of the sales? How much warranty expense related to these sales will Key Company have in the two years after the sales?
3. Account for mortgages. Nunez Company has arranged to borrow $25,000 for five years at an interest rate of 8%. The annual payments will be $6,261.41. When Nunez makes its first payment at the end of the first year of the loan, how much of the payment will be interest?
1 answer