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The Wage and Tax Statement given to each employee annually is:

The employer should record deductions from employee pay as:

An advantage of lease financing is the lack of an immediate large cash payment for the leased asset.

Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record the cash sales?

A company’s ability to issue unsecured debt depends on its credit standing.

The times interest earned ratio is calculated by dividing interest expense by income before interest expense and income taxes.

Additions to land that increase the usefulness of the land such as parking lots, fences, and lighting are not depreciated.

Periodic interest payments on bonds are determined by multiplying the par value of the bond by the contract rate.

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the straight-line method.

An asset’s book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: