Ramirez Company has the following data for the weekly payroll ending January 31.

	Hours						Hourly	Federal Income Tax	Health
Employee	M	T	W	T	F	S	Rate	Withholding	Insurance
L. Helton	8	8	9	8	10	3	$12	$34	$10
R. Kenseth	8	8	8	8	8	2	14	37	25
D. Tavaras	9	10	8	8	9	0	15	58	25

Instructions

(b) Prepare the journal entries to record the payroll and Ramirez’s payroll tax expense.

Mann Hardware has four employees who are paid on an hourly basis plus timeand-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2017, are presented below.

Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%.

Instructions (b) Journalize the payroll on March 15, 2017, and the accrual of employer payroll taxes.

Mann Hardware has four employees who are paid on an hourly basis plus timeand-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2017, are presented below.

Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%.

Instructions (d) Journalize the deposit in a Federal Reserve bank on March 31, 2017, of the FICA and federal income taxes payable to the government.

Mann Hardware has four employees who are paid on an hourly basis plus timeand-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2017, are presented below.

Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%.

Instructions (c) Journalize the payment of the payroll on March 16, 2017.

Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $188 per unit during the current year. Its income statement is as follows:

$$\begin{array}{lrr} \text{Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .}& &\$ 188,000,000\\ \text{Cost of goods sold . . . . . . . . . . . . . . . . }&&(100,000,000)\\ \text{Gross profit . . . . . . . . . . . . . . . . . . . . . . .}& &\$ 88,000,000\\ \text{Expenses:}\\ \text{Selling expenses . . . . . . . . . . . . . . .}& \$16,000,000\\ \text{Administrative expenses . . . . . . . }&12,000,000\\ \text{Total expenses . . . . . . . . . . . . . }&&(28,000,000)\\ \text{Operating income. . . . . . . . . . . . . . . . . }&&\$ 60,000,000 \end{array}$$

The division of costs between variable and fixed is as follows:

$$\begin{array}{lcc} & \text { Variable } & \text { Fixed } \\ \hline \text { Cost of goods sold } & 70 \% & 30 \% \\ \text { Selling expenses } & 75 \% & 25 \% \\ \text { Administrative expenses } & 50 \% & 50 \% \end{array}$$

Management is considering a plant expansion program for the following year that will permit an increase of $11,280,000 in yearly sales. The expansion will increase fixed costs by$5,000,000 but will not affect the relationship between sales and variable costs.

Instructions

1. Determine the total variable costs and the total fixed costs for the current year.
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $60,000,000 of operating income that was earned in the current year.
6. Determine the maximum operating income possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?
8. Based on the data given, would you recommend accepting the proposal? Explain.

Revise the following paragraph. Add a topic sentence and improve the organization. Correct problems with pronouns, parallelism, wordiness, and misplaced or dangling modifiers.

As you probably already know, this company (Lasertronics) will be installing new computer software shortly. There will be a demonstration April 18, which is a Tuesday. You are invited. We felt this was necessary because this new software is so different from our previous software. It will be from 9 to 12 a.m. in the morning. This will show employees how the software programs work. They will learn about the operating system, and this should be helpful to nearly everyone. There will be information about the new word processing program, which should be helpful to administrative assistants and product managers. For all you people who work with payroll, there will be information about the new database program. We can't show everything the software will do at this one demo, but for these three areas there will be some help at the Tuesday demo. Presenting the software, the demo will feature Paula Roddy. She is the representative from Quantum Software.

Revise the following paragraph. Add a topic sentence and improve the organization. Correct problems with pronouns, parallelism, wordiness, and misplaced or dangling modifiers. Add transitional expressions if appropriate.

You may be interested in applying for a new position within the company. The Human Resources Department has a number of jobs available immediately. The positions are at a high level. Current employees may apply immediately for open positions in production, for some in marketing, and jobs in administrative support are also available. To make application, these positions require immediate action. Come to the Human Resources Department. We have a list showing the open positions, what the qualifications are, and job descriptions are shown. Many of the jobs are now open. That's why we are sending this now. To be hired, an interview must be scheduled within the next two weeks.

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of$24 for work in excess of 40 hours. During a January pay period, Beth works 45 hours. Beth’s federal income tax withholding is $95, she has no voluntary deductions, and the FICA tax rate is 7.65%. Compute Beth Corbin’s gross earnings and net pay for the pay period.

Susan Braun’s regular hourly wage rate is $16, and she receives an hourly rate of$24 for work in excess of 40 hours. During a January pay period, Susan works 47 hours. Susan’s federal income tax withholding is $95, and she has no voluntary deductions. Compute Susan Braun’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 7.65%.

On December 1, Bruney Company introduces a new product that includes a oneyear warranty on parts. In December, 1,000 units are sold. Management believes that 5% of the units will be defective and that the average warranty costs will be $90 per unit.

Prepare the adjusting entry at December 31 to accrue the estimated warranty cost.

Peralta Company borrows $60,000 on July 1 from the bank by signing a$60,000, 10%, one-year note payable.

(b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.

The population of the state of Georgia (in thousands) from 1995 (t=0) to 2005 (t=10) is modeled by the polynomial p(t)=$-0.27t^2$+101t+7055. Determine the average growth rate from 1995 to 2005.

The amount of profit (in millions) made by Scandal Math, a company that writes math problems based on tabloid articles, can be found by the equation $P ( n ) = - n ^ { 2 } + 10 n$ where n is the number of textbooks sold (also in millions). Find the maximum profit and the number of textbooks that Scandal Math must sell to realize this maximum profit.

Morgan Company’s balance sheet at December 31, 2016, is presented below.

$$\begin{array}{c} \textbf{MORGAN COMPANY}\\ \textbf{Balance Sheet}\\ \textbf{December 31, 2016}\\ \end{array}$$

$$\begin{array}{lrlr} \text { Cash } & \$ 30,000 & \text { Accounts Payable } & \$ 13,750 \\ \text { Inventory } & 30,750 & \text { Interest Payable } & 250 \\ \text { Prepaid Insurance } & 6,000 & \text { Notes Payable } & 50,000 \\ \text { Equipment } & \underline{~~~~38,000} & \text { Owner's Capital } & \underline{~~~40,750} \\ &\underline{\underline{\$ 104,750}} & & \underline{\underline{\$ 104,750}} \\ \end{array}$$

During January 2017, the following transactions occurred. (Morgan Company uses the perpetual inventory system.)

1. Morgan paid $\$ 250$ interest on the note payable on January 1, 2017. The note is due December 31, 2018.
2. Morgan purchased $\$ 261,100$ of inventory on account.
3. Morgan sold for $\$ 440,000$ cash, inventory which cost $\$ 265,000$. Morgan also collected $\$ 28,600$ in sales taxes.
4. Morgan paid $\$ 230,000$ in accounts payable.
5. Morgan paid $\$ 17,000$ in sales taxes to the state.
6. Paid other operating expenses of $\$ 30,000$.
7. On January 31, 2017, the payroll for the month consists of salaries and wages of $\$ 60,000$. All salaries and wages are subject to $7.65 \%$ FICA taxes. A total of $\$ 8,900$ federal income taxes are withheld. The salaries and wages are paid on February 1.

Adjustment data: 8. Interest expense of $\$ 250$ has been incurred on the notes payable. 9. The insurance for the year 2017 was prepaid on December 31, 2016. 10. The equipment was acquired on December 31, 2016, and will be depreciated on a straight-line basis over 5 years with a $\$ 2,000$ salvage value. 11. Employer's payroll taxes include $7.65 \%$ FICA taxes, a $5.4 \%$ state unemployment tax, and an $0.8 \%$ federal unemployment tax.

Instructions (You may need to set up T-accounts to determine ending balances.) (b) Prepare an adjusted trial balance at January 31, 2017.