User Account

All Pages

Show the effect of the above transaction on a statements

Assignment Help Accounting Basics
Reference no: EM13925467

Sneed Co. provides various fringe benefits for its three employees. It provides vacation and personal leave at the rate of one day for each month worked. Its employees earn a combined total of approximately $400 per day. In addition, Sneed Co. pays $650 per month in medical insurance premiums for its employees. Sneed also contributes $400 per month into a retirement plan for the employees. The federal unemployment tax rate is .8 percent and the state unemployment tax rate is 4.0 percent on the first $7,000 of earnings per employee. 

Required: 

a. Prepare the monthly journal entry for the accrued fringe benefits. 
b. Show the effect of the above transaction on a statements model like the one shown below.

1417_264-B-A-L (2849).png

c. If the three employees each worked 250 days, what is Sneed Co.'s total payroll cost (salary, payroll taxes, and fringe benefits) for the year? (Assume that each employee earns $200 per day.) 

Reference no: EM13925467

Questions Cloud

What percentage of unexplained variance in capmmi portfolio : What is the percentage of unexplained variance in the CAPMMI portfolio? Does this portfolio qualify as highly diversified? How much would it be possible to lower the risk of the CAPMMI in a portfolio with identical factor exposures?
What is shadows cost of equity : Shadow Corp. has no debt but can borrow at 8.0 percent. The firm’s WACC is currently 9.8 percent, and the tax rate is 35 percent. What is Shadow’s cost of equity? If the firm converts to 15 percent debt, what will the company's WACC be? If the firm c..
Perform a complete regression analysis : Perform a complete regression analysis using Minitab to determine whether or not the simple linear regression model is appropriate for this data.
What is the after-tax operating cash flow expected in year : Standard Corporation is investing $400,000 of fixed capital in a project that will be depreciated straight-line to zero over its ten-year life. Annual sales are expected to be $240,000, and annual cash operating expenses are expected to be $110,000. ..
Show the effect of the above transaction on a statements : Show the effect of the above transaction on a statements model like the one shown below.
Your firm has a line of credit with your local bank : Your firm has a line of credit with your local bank for $50,000. The loan agreement calls for interest of 9% with a 5% compensating balance requirement which is based on the total amount borrowed. What is the effective interest rate if you need $42,7..
What mmi asset has the highest alpha : Excess return forecasts of zero for all other factors. Using the CAPMMI as a benchmark, what MMI asset has the highest alpha? What is its value?
Increase net working capital : Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.
What is the expected return to the given asset : What is the expected return to this asset? What is its beta with respect to the stock? How does this relate to the breakdown of Eq. (8.7)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How that status might affect achieved status

Write three paragraphs for each scenario. Each paragraph should be 3-4 sentences long. Demonstrate that you have researched the cultures by providing 1-2 academic references.

  Effect on company overall net operating income

Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued. What would be the effect on the company's overall net ..

  Prepare the business income statement for the period

Prepare the business Income Statement for the period, prepare the Statement of Changes in Equity for the period and prepare the classified Balance Sheet at the end of the period.

  What is the corporations basis in the contributed assets

Molly and Dolly form MD Corporation. Molly transfers a building with a fair market value of $800,000 and a basis of $400,000 that is encumbered by a $100,000 mortgage that the corporation assumes in exchange for 50 percent of MD's stock.

  An aging of accounts receivable indicated that 62500 of

before year-end adjusting entries carter companys account balances at december 312013 for accounts receivable and the

  The rate of return on common stockholders equity

Tanfield is in a better position to pay debt in 2015 than in 2014. The current ratio, cash ratio, and times-interest-earned ratio all improved. The inventory turnover improved, but was offset by a decrease in the gross profit percentage.

  If smith company buys the part from jones company instead

smith company needs 1000 units of a certain part for its manufacturing process. it can buy the part from jones company

  Describe and explain the primary differences between fixed

1.identify and explain the primary differences between fixed and flexible budgets.2.describe at least five benefits of

  Calculate labour mix variance if group x standard details

calculate labour mix variance. if group x standard details are 200 workers at 6 per hour and its actual detail are 240

  What two accounts will be affected while recording entries

what two accounts will be affected while recording entries inthe general ledger when you bill a customer for services

  Assume projections are for the golf ball to earn above the

can someone help me do the 2nd and 3rd question of the new ball golf 1. conduct a sensitivity analysis where the

  Open market as treasury stock pay

Open market as treasury stock pay

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd