Mane Company
P10-1A On January 1, 2011, the ledger of Mane Company contains the following liability accounts.
Accounts Payable $52,000 Sales Taxes Payable 7,700
Unearned Service Revenue 16,000
During January the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $22,680, which includes 8% sales taxes. 12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2010 ($7,700). 20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax. 21 Borrowed $18,000 from UCLA Bank on a 3-month, 8%, $18,000 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.
Instructions
(a) Journalize the January transactions. …show more content…
What are the amounts of state and federal taxes that you pay on the $1,200?
Federal Tax Rate = 0.184 per gallon
State Tax Rate = 0.329
400 x (0.184 + 0.329) = $205.20
(d) Assume that your purchases for the year total $9,000. Of this amount, $5,000 was for food and prescription drugs. What is the amount of sales tax you would pay on these purchases? (Note that many states do not have a sales tax for food or prescription drug purchases. Does yours?).
4000 x .05 = $200
(e) Determine what your Social Security taxes are if your income is $60,000.
60,000 x 0.0765 = $4,590
(f) Determine what your federal income taxes are if your taxable income is $60,000 and you fileas a single taxpayer.
4,481 + (60,000 – 32,550) *0.25 = $11,343.50
(g) Determine your total taxes paid based on the above calculations, and determine the percentage of income that you would pay in taxes based on the following formula: Total taxes paid (divided y) Total Income.
Total Tax = 11343.50 + 4950 + 200 +205.20 + 4200 + 3682 = 24580.70
Total Tax = 24580.7 / 60000 = 0.40967
Accounts Payable $52,000 Sales Taxes Payable 7,700
Unearned Service Revenue 16,000
During January the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $22,680, which includes 8% sales taxes. 12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2010 ($7,700). 20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax. 21 Borrowed $18,000 from UCLA Bank on a 3-month, 8%, $18,000 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.
Instructions
(a) Journalize the January transactions. …show more content…
What are the amounts of state and federal taxes that you pay on the $1,200?
Federal Tax Rate = 0.184 per gallon
State Tax Rate = 0.329
400 x (0.184 + 0.329) = $205.20
(d) Assume that your purchases for the year total $9,000. Of this amount, $5,000 was for food and prescription drugs. What is the amount of sales tax you would pay on these purchases? (Note that many states do not have a sales tax for food or prescription drug purchases. Does yours?).
4000 x .05 = $200
(e) Determine what your Social Security taxes are if your income is $60,000.
60,000 x 0.0765 = $4,590
(f) Determine what your federal income taxes are if your taxable income is $60,000 and you fileas a single taxpayer.
4,481 + (60,000 – 32,550) *0.25 = $11,343.50
(g) Determine your total taxes paid based on the above calculations, and determine the percentage of income that you would pay in taxes based on the following formula: Total taxes paid (divided y) Total Income.
Total Tax = 11343.50 + 4950 + 200 +205.20 + 4200 + 3682 = 24580.70
Total Tax = 24580.7 / 60000 = 0.40967