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2. (part 1 of 3) Required information Skip to question [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. $ 5,300 $ 2,600 b. 2,800 $ 2,900 c. 132,200 $ 8,800 Compute BMXs amounts for each of these four taxes as applied to the employees gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.) a)

Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA---Social Security	2,600.00	6.20%	161.20
FICA--Medicare	2,600.00	1.45%	37.70
FUTA		0.60%
SUTA		5.40%

b)

Tax	September Earnings Subject to Tax	Tax Rate	Tax Amount
FICA--Social Security	2,900.00	6.20%	179.80
FICA--Medicare	2,900.00	1.45%	42.05
FUTA
SUTA

3. Required information part 2 of 3

[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.	$ 5,300	$ 2,600
b.	2,800	2,900
c.	132,200	8,800

4. part 3 of 3 Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $70 for this pay period.

Taxes to be Withheld From Gross Pay

The employees federal income taxes withheld by the employer are $70 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)

Taxes to be Withheld from Gross Pay (Employee-Paid Taxes)

	September Earnings Subject to Tax	Tax Rate	Tax Amount
Federal Income Tax			$70.00

General Journal Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $70 for this pay period. (Round your answers to 2 decimal places.)

Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.

Date General Journal Debit Credit September 30

Assuming situation (a), prepare the employers September 30 journal entry to record the employers payroll taxes expense and its related liabilities.

Payroll Taxes Expense Assuming situation (a), compute the payroll taxes expense. (Round your answers to 2 decimal places.)

Employee Payroll taxes	September earnings subject to tax	Tax Rate	Tax Amount

General Journal Prepare the employers September 30 journal entry to record the employers payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) Record the employer's September 30 payroll taxes expense and its related liabilities.

Date General Journal Debit Credit September 30

5. Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $96 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier.

1. How much warranty expense does the company report for this copier in Year 1? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copiers sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2.

1. Warranty expense
2. Estimated warranty liability as of December 31 of Year 1
3. Estimated warranty liability as of December 31 of Year 2

Record the sale of a copier for $13,000 cash. Date General Journal Debit Credit August 16

Record the cost of goods sold of $6,500. Date General Journal Debit Credit August 16

Record the estimated warranty expense at 4% of the sales. Date General Journal Debit Credit December 31

Record the cost of repairs that occur on January 5 of Year 2. Date General Journal Debit Credit January 05

6.The following information applies to the questions displayed below.]

Tyrell Company entered into the following transactions involving short-term liabilities. Year 1

April 20	Purchased $38,500 of merchandise on credit from Locust, terms n/30.
May 19	Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $3,500 in cash.
July 8	Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 note payable.
__?__	Paid the amount due on the note to Locust at the maturity date.
__?__	Paid the amount due on the note to NBR Bank at the maturity date.
November 28	Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7%, $36,000 note payable.
December 31	Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Year 2

__?__	Paid the amount due on the note to Fargo Bank at the maturity date.

5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.)

No	Date	General Journal	Debit	Credit
1	April 20	Merchandise inventory	38,500
		Accounts payable--Locust		38,500
2	May 19	Accounts payable--Locust	38,500
		Cash		3,500
		Notes payable--Locust		35,000
3	July 08	Cash	54,000
		Notes payable--NBR Bank		54,000
4	August 17	Interest expense
5	November 05	Notes payable--NBR Bank	54,000
		Interest expense
6	November 28	Cash
		Notes payable--Fargo Bank	36,000
				36,000
7	December 31	Interest expense
		Interest payable