Reference no: EM131258144
1. The total payroll of Sunshine Company for the month of November 2016 was $756,400, of which $126,540 represented amounts over the maximum FICA tax amount. $526,820 represented amounts paid to employees in excess of the $7,000 maximum subject to state unemployment taxes. In addition, $159,340 federal income taxes was withheld, $24,530 of state income tax was withheld, $52,360 of health insurance coverage was withheld and $21,430 of union dues were withheld. The FICA income tax rate is 7.65% on income up to the maximum amount for 2016 and medicare is 1.45% on all amounts in excess of the FICA maximum. Prepare the journal entry for Sunshine for wages and for payroll taxes dated November 30,2016.
2. A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2016. Historically 10% of the customers mail in the rebate forms. During 2016, 4,000,000 packages of light bulbs are sold, and 140,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2016 financial statements dated December 31,2016?
3. Included in Sander's liability account balances at December 31,2016 were the following:
7% note payable issued October 1,2016, maturing on September 30,2017 $250,000
8% note payable issued April 1,2015, payable in six equal annual installments of
$150,000 beginning on April 1,2017 $600,000
Sander's December 31,2016 financial statements were issued on March 1,2017. On January 5,2017, the entire $600,000 loan was refinanced by issuing a new long term obligation payable on January 5,2022. In addition, on March 1,2017 entered a non-cancelable agreement to refinance the $250,000 loan with a new due date of March 1,2026. How much of these two loans should be reported as current liabilities on Sander's 12/31/16 balance sheet?
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