Problem 5: Investment in Equity Securities On January 1, the…

Problem 5: Investment in Equity Securities On January 1, the company acquires 30% of the stock of Sun Times, Inc. at a cost of $140,000.  On December 31, Sun Times reports a net income of $70,000, and declares and pays a dividend of $10,000.  Assume that the investment is made for cash. Use the above information to answer questions 12 thru 14.

Problem 7: Payroll Entries Employees earn $54,000 in salarie…

Problem 7: Payroll Entries Employees earn $54,000 in salaries for the month, and are paid on October 31.  The employer withholds the following:                     Federal Income Taxes                     8,200                     State Income Taxes                         3,300                     FICA Taxes                                           4,131                     Union Dues                                         1,400 After withholdings, the employees’ net pay is $36,969. Assume that state unemployment taxes are $600 and federal unemployment taxes are $300. Assume there is no prior accrual of the salaries. Use the above information to answer questions 22-23.