Lenny Fiorita, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $14 per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income taxes. He claims two withholding allowances.

Compute his regular pay, overtime pay (Lenny earns$21 per hour for each hour over 40 per week), and gross pay. Then compute his FICA tax deduction (6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction, total deductions, and net pay. Round tax amounts to the nearest cent.

Refer to Samsung's recent balance sheet in Appendix A. What current liabilities related to income taxes are on its balance sheet? Explain the meaning of each income tax account identified.

Refer to Samsung's balance sheet in Appendix A. List Samsung's current liabilities as of December 31,2015 .

Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimared income taxes are accrued each month for 30% of the current month's net income. The income taxes are paid in the first month of each quarter for the amount incurred for the prior quarter. The following information is available for the fourth quarter of the year just ended. When tax computations are completed on January 20 of the following year, Nishi determines that the quarter's Income Taxes Payable account balance should be $28,300 on December 31 of the year just ended (its unadjusted balance is$24,690).

October net income      $28,600 
November net income$19,100 
December net income     $34,600

1. Determine the amount of the accounting adjustment (dated as of December 31) to get the correct ending balance in the Income Taxes Payable account.
2. Prepare journal entries to record (a) the December 31 adjustment to the Income Taxes Payable account and (b) the later January 20 payment of the fourth-quarter taxes.

Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 30% of the current month’s net income. The income taxes are paid in the first month of each quarter for the amount accrued for the prior quarter. The following information is available for the fourth quarter of year 2017. When tax computations are completed on January 20, 2018, Nishi determines that the quarter’s Income Taxes Payable account balance should be $28,300 on December 31, 2017 (its unadjusted balance is$24,690).

$$\begin{matrix} \text{October 2017 net income} \ldots\ldots\ldots & \text{\$28,600}\\ \text{November 2017 net income}\ldots\ldots\ldots & \text{19,100}\\ \text{December 2017 net income} \ldots\ldots\ldots & \text{34,600}\\ \end{matrix}$$

1. Determine the amount of the accounting adjustment (dated as of December 31, 2017) to produce the proper ending balance in the Income Taxes Payable account. 2. Prepare journal entries to record (a) the December 31, 2017, adjustment to the Income Taxes Payable account and (b) the January 20, 2018, payment of the fourth-quarter taxes.

Refer to Google's balance sheet in Appendix A. What "accrued" expenses (liabilities) does Google report at December 31, 2015?

Use the following information from separate companies a through d to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?

Use the following information from separate companies a through f to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? (Round ratios to two decimals.)

$$\begin{matrix} & \text{Net Income (Loss)} & \text{Interest Expense} & \text{Income Taxes}\\ \text{a.} & \text{\$115,000} & \text{\$44,000} & \text{\$ 35,000}\\ \text{b.} & \text{110,000} & \text{16,000} & \text{50,000}\\ \text{c.} & \text{100,000} & \text{12,000} & \text{70,000}\\ \text{d.} & \text{235,000} & \text{14,000} & \text{130,000}\\ \text{e.} & \text{59,000} & \text{14,000} & \text{30,000}\\ \text{f.} & \text{(5,000)} & \text{10,000} & \text{0}\\ \end{matrix}$$

Refer to Samsung's balance sheet in Appendix A. List Samsung's current liabilities as of December 31, 2017.

Answer each of the following related to international accounting standards.

Companies reporting under IFRS often reference a set of current liabilities with the title financial liabilities. Identify two current liabilities that would be classified under financial liabilities per IFRS. (Hint: Samsung offers examples in its Appendix A financial statements.)

Answer each of the following related to international accounting standards. a. In general, how similar or different are the definitions and characteristics of current liabilities between IFRS and U.S. GAAP? b. Companies reporting under IFRS often reference a set of current liabilities with the title financial liabilities. Identify two current liabilities that would be classified under financial liabilities per IFRS.

Sera Corporation has made and recorded its quarterly income tax payments. After a final review of taxes for the year, the company identifies an additional $40,000 of income tax expense that should be recorded. A portion of this additional expense,$6,000, is deferred for payment in future years. Record Sera’s yearend adjusting entry for income tax expense.

Selected accounts from Luc Co.'s adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet.

Total equity                      $30,000         Employee federal income taxes payable$9,000
Equipment                          40,000         Federal unemployment taxes payable                 200 
Salaries payable                   34,000         FICA-Medicare taxes payable                        725
Accounts receivable                 5,100         FICA-Social Security taxes payable               3,100
cash                               50,000         Employee medical insurance payable               2,000 
Current portion of long-term debt   4,000         State unemployment taxes payable                 1,800
Notes payable (due in 6 years)     10,000         Sales tax payable (due in 2 weeks)                 275

The payroll records or Speedy Software show the following information about Marsha Gottschalk, an employee. for the weekly pay period ending September 30. Gottschalk is single and claims one allowance. Compute her Social Security tax (6.2%). Medicare tax (1.45%), federal income tax withholding , state income tax (1.0%), and net pay for the current pay period. Round tax amounts to the nearest cent.

Total (gross) earnings for current pay period      $740 
Cumulative earnings of previous pay periods$9,700