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Question
On January 5, Thomas Company, which follows a calendar year, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 each of the next four years. The proper balance sheet presentation on December 31 is
a. Current liabilities, $1,000,000
b. Current liabilities, $250,000; Long-term debt, $750,000
c. Long-term debt, $1,000,000
d. Current liabilities, $750,000; Long-term debt, $250,000
Use this information for Harris Company to answer the following questions.
Harris Company has the following information for the pay period of January 15–31:
Gross payroll $10,000 Federal income tax withheld $1,800
Social security rate 6.0% Federal unemployment tax rate 0.8%
Medicare rate 1.5% State unemployment tax rate 5.4%
Assume that for the year to date no employees have reached the maximum earnings subject to FICA taxes.
Answer
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