Description of this paper

Fungus Audio Works Inc

Description

solution


Question

ungus Audio Works Inc. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $680,000 for January. In February, a customer received warranty repairs requiring $4,200 of parts.;a. Determine the warranty liability at January 31, the end of the first month of the current year.;b. What accounts are decreased for the warranty work provided in February?;According to a summary of the payroll of Apline Publishing Co., $460,000 was subject to the 7.5% FICA tax. Also, $39,000 was subject to state and federal unemployment taxes.;a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.3%, federal unemployment, 0.8%.;b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes.

 

Paper#81693 | Written in 18-Jul-2015

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