On November 7, 2017, Mura Company borrows $190,000 cash by signing a 90-day, 12% note payable with a face value of $190,000

On November 7, 2017, Mura Company borrows $190,000 cash by signing a 90-day, 12% note payable with a face value of $190,000. (Use 360 days a year. Do not round your intermediate calculations.)

1. Compute the accrued interest payable on December 31, 2017.

Principal x Rate (%) x Time     = Interest Total through maturity $190,000selected answer correct 12selected answer correct % 90/360selected answer correct $5,700selected answer correct Year end interest accrual $190,000selected answer correct 12selected answer correct % 54/360selected answer correct $3,420selected answer correct Interest recognized February 5 $190,000selected answer correct 12selected answer correct % 36/360selected answer correct $2,280selected answer correct

2. & 3. Prepare the journal entry to record the accrued interest expense at December 31, 2017 and payment of the note at maturity.

No	Date	General Journal	Debit	Credit
1	Dec 31, 2017	Interest expenseselected answer correct	3,420selected answer correct	not attempted
		Interest payableselected answer correct	not attempted	3,420selected answer correct
2	Feb 05, 2018	Notes payableselected answer correct	190,000selected answer correct	not attempted
		Interest payableselected answer correct	3,420selected answer correct	not attempted
		Interest expenseselected answer correct	2,280selected answer correct	not attempted
		Cashselected answer correct	not attempted	195,700selected answer correct

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4.

Merger Co. has 10 employees, each of whom earns $1,850 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.

Prepare the March 31 journal entry to record the March payroll taxes expenses. (Round your answers to 2 decimal places.)

No	Date	General Journal	Debit	Credit
1	Mar 31	Payroll taxes expenseselected answer correct	2,525.25selected answer correct	not attempted
		FICA—Social sec. taxes payableselected answer correct	not attempted	1,147.00selected answer correct
		FICA—Medicare taxes payableselected answer correct	not attempted	268.25selected answer correct
		Federal unemployment taxes payableselected answer correct	not attempted	111.00selected answer correct
		State unemployment taxes payableselected answer correct	not attempted	999.00