Pepa Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30%. What is the bonus for the year?

[The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.    Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500   Exercise 11-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities.     Record the employer's September 30 payroll taxes expense and its related liabilities. Note: Enter debits before credits.         Date General Journal Debit Credit September 30 Payroll taxes expense       FICA—Social security taxes payable       FICA—Medicare taxes payable       Federal…

Willamette Manufacturing estimated that its total payroll for the coming year would be $650,000. The workers' compensation insurance premium rate is 0.3%.

A company buys a machine for $18,000, which it agrees to pay for in five equal annual payments, beginning one year after the date of purchase, at an annual interest rate of 7%. Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? Solution: 1. Draw the CFD by yourself; 2. First, calculate annual payment amount for the first 2 years: O A= + 7%, • )=18000x =$ o The final payment is the • worth of the : unpaid payments. 3. Second, Calculate the single payment amount due at the end of the 3rd year: F=S

Lee Cheol San Company pays commissions to its sales staff at the rate of 3% of net sales. Sales staff are not paid salaries but are given monthly advances of P15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net Sales for the year ended March 31, 2020 were P15,000,000. The unadjusted balance in the commissions expense account on March 31, 2020 was P400,000. March advances were paid on April 3, 2020. In its income statement for the year ended March 31, 2020, what amount should Lee Cheol San report as commission expense? A. P400,000 B. P415,000 C. P450,000 D. P465,000

William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, Employees’ State Income Tax Payable will be:   Question 24 options:   Debited for $12,500   Credited for $75,000   Debited for $75,000   Neither debited nor credited   Credited for $12,500

Royall Company purchased a delivery truck at $25,000 plus 8% sales taxes.  Royall paid $3,000 in cash and financed the rest at 6% requiring 40 equal monthly payments at the end of each month. Compute the amount of the monthly payment that Royall must pay.

14. INCOME TAX PAYMENT Managers at Benson Automotive sign a $48,000 simple discount note for six months for funds to pay corporate income taxes. If the discount rate is 8.5%, find (a) the discount and (b) the proceeds.

Locust Inc. owes ​$20,000.00 to be repaid by monthly payments of ​$510.00. Interest is 6​% compounded monthly. ​(a) How many payments will Locust Inc. have to​ make? ​(b) How much interest is included in the 10th ​payment? ​(c) How much of the principal will be repaid in the 9th payment​ period? ​(d) Construct a partial amortization schedule showing details of the first three​ payments, the last three​ payments, and totals.

In January, gross earnings in Sunland Company totaled $100,000. All earnings are subject to 7.65% FICA taxes (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), 5.4% state unemployment taxes, and 0.6% federal unemployment taxes.Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31