Wages paid by an employer to an employee who is the employer's child under age 18 are not subject to federal FICA and unemployment taxes.
Answer the following statement true (T) or false (F)
True
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A company contributes to its defined contribution plan. Which one of the following journal entries properly records this transaction?
A.
| DR | Pension asset |
B.
| DR | Projected minimum liability |
C.
| DR | Minimum pension liability |
D.
| DR | Pension expense |
Answer the following statements true (T) or false (F)
1. Vacation, health, and pension benefits must be estimated and recorded as a liability. 2. When an employee takes a paid vacation, the Vacation Benefits Payable account will be decreased with a credit. 3. A pension plan is a plan that provides benefits to retired employees. 4. Warranties pose an accounting challenge because a company does not know which or how many products will have to be repaired. 5. The entry to accrue the warranty payable includes a credit to Warranty Expense.
Use the following information to answer the question below. When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1 . The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000
bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2 . The company issued 8,000 shares of stock at a price of $25 per share. 3 . The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $160,000. The entry to record transaction 3 would be: a. Equipment 140,000 Common Stock 140,000 b. Common Stock 140,000 Equipment 140,000 c. Equipment 160,000 Common Stock 160,000 d. Equipment 160,000 Common Stock 140,000 Additional Paid-in Capital 20,000
In 2001, Nike admitted that it used child labor to produce its expensive sportswear products while paying the children just pennies a day. In doing so, Nike ______.
A. deprived some children of the opportunity to have a childhood as in developed economies B. provided society with opportunities to have a more educated population C. created new consumers with the ability to purchase products and services D. showed it was being socially responsible