A Company paid or collected during the current year the following items: Insurance premium paid 15,400 Interest collected 30,900 Salaries paid 135,200 The following balances have been excerpted from A’s balance sheet: December 31 January 1 Prepaid insurance 1,200 1,500 Interest receivable 3,700 2,900 Salaries payable 12,300 10,600 The salary expense on the income statement for the current year was

A Company paid or collected during the current year the following items: Insurance premium paid 15,400 Interest collected 30,900 Salaries paid 135,200 The following balances have been excerpted from A’s balance sheet: December 31 January 1 Prepaid insurance 1,200 1,500 Interest receivable 3,700 2,900 Salaries payable 12,300 10,600 The salary expense on the income statement for the current year was

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 6E: On September 30, Cody Companys selected account balances are as follows: In general journal form,...

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Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 2. Issued Check No. 410 for 3,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 27,046, in payment of 9,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees earnings of December13: social security tax, 4,632; Medicare tax, 1,158; state unemployment tax, 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020, in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees earnings of December27: social security tax, 4,668; Medicare tax, 1,167; state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3,400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries,1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries, 1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 1. Issued Check No. 815 to Aberderas Insurance Company for 2,520, in payment of the semiannual premium on the group medical insurance policy. 1. Issued Check No. 816 to Alvarez Bank for 8,131, in payment for 2,913 of social security tax, 728 of Medicare tax, and 4,490 of employees federal income tax due. 2. Issued Check No. 817 for 2,300 to Alvarez Bank to invest in a retirement savings account for employees. 12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 1. Issued Check No. 815 to Aberderas Insurance Company for 2,520, in payment of the semiannual premium on the group medical insurance policy. 1. Issued Check No. 816 to Alvarez Bank for 8,131, in payment for 2,913 of social security tax, 728 of Medicare tax, and 4,490 of employees federal income tax due. 2. Issued Check No. 817 for 2,300 to Alvarez Bank to invest in a retirement savings account for employees. 12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 12. Issued Check No. 822 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 12. Journalized the entry to record payroll taxes on employees earnings of December12: social security tax, 1,452; Medicare tax, 363; state unemployment tax, 315; federal unemployment tax, 90. 15. Issued Check No. 830 to Alvarez Bank for 7,938, in payment of 2,904 of social security tax, 726 of Medicare tax, and 4,308 of employees federal income tax due. 26. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 26. Issued Check No. 840 for the net amount of the biweekly payroll to fund the payroll bank account. Dec. 26. Journalized the entry to record payroll taxes on employees earnings of December 26: social security tax, 1,455; Medicare tax, 364; state unemployment tax, 150; federal unemployment tax, 40. 30. Issued Check No. 851 for 6,258 to State Department of Revenue, in payment of employees state income tax due on December 31. 30. Issued Check No. 852 to Alvarez Bank for 2,300 to invest in a retirement savings account for employees. 31. Paid 55,400 to the employee pension plan. The annual pension cost is 65,500. (Record both the payment and the unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: sales salaries, 4,275; officers salaries, 2,175; office salaries, 825. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 13,350.
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: sales salaries, 4,275; officers salaries, 2,175; office salaries, 825. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 13,350.
On September 30, Cody Companys selected account balances are as follows: In general journal form, prepare the entries to record the following: Oct. 15Payment of liabilities for FICA taxes and the federal income tax. 31Payment of liability for state unemployment tax. 31Payment of liability for federal unemployment tax.
The totals from the first payroll of the year are shown below. TotalEarnings FICAOASDI FICAHI FITW/H StateTax UnionDues NetPay $36,195.10 $2,244.10 $524.83 $6,515.00 $361.95 $500.00 $26,049.22 Journalize the adjustment for accrued wages for the following Monday, which is the end of the accounting period. The gross payroll for that day is $7,475.
Recording and Reporting Liabilities The following selected transactions of Johnson Motors Company were completed during the current accounting year ended December 31. 1. March 1, borrowed $55,000 on a two-year, 12% interest-bearing note. Interest is paid annually. 2. April 1, borrowed cash and signed a $44,000, two-year, noninterest-bearing note. The market rate for this level of risk was 12%. 3. June 1, purchased a truck with a list price of $72,600. Paid $6,600 cash and signed a $66,000, one-year, noninterest-bearing note. The market rate for this level of risk was 12%. 4. During the year, sold merchandise for $66,000 cash that carried a two-year warranty for parts and labor. A reasonable estimate of the cost of the warranty is 1.5% of sales revenue. By December 31, actual warranty costs amounted to $550. 5. June 1, Johnson cosigned and guaranteed payment of a $110,000, 14%, one-year note owed by a local supplier to City Bank. The bank required a cosignature; but Johnson believes…
The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $ 13,900.00 Social security and Medicare taxes withheld 1,042.50 Income taxes withheld 317.00 Retirement savings 450.00 The entry to record the payment of net pay would include a Oa. credit to Salaries Payable for $12,090.50 Ob. credit to Salaries Expense for $12,090.50 Oc. debit to Salaries Payable for $12,090.50 Od. debit to Salaries Payable for $13,900.00
The following totals for the month of June were taken from the payroll register of Arcon Company: $11,940.00 Salaries expense Social security and Medicare taxes withheld Income taxes withheld 895.50 289.00 531.00 Retirement savings The entry to record the payment of net pay would include a O a. debit to Salaries Payable for $11,940.00. Ob. credit to Salaries Expense for $10,224.50. O c. debit to Salaries Payable for $10,224.50. Od. credit to Salaries Payable for $10,224.50.
The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $ 14,900.00 Social security and Medicare taxes withheld 1,117.50 Income taxes withheld 306.00 Retirement savings 580.00 The entry to record the payment of net pay would include a a.debit to Salaries Payable for $14,900.00 b.debit to Salaries Payable for $12,896.50 c.credit to Salaries Payable for $12,896.50 d.credit to Salaries Expense for $12,896.50
Selected accounts from Lue Co.'s adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Total equity..... ....$30,000 Employee federal income taxes payable $9000 Equipment... Salaries payable ..... 40,000 Federal unemployment taxes payable ... 200 34,000 FICA–Medicare taxes payable... 5,100 FICA–Social Security taxes payable .. . 50,000 Employee medical insurance payable ... . 4,000 State unemployment taxes payable.. 10,000 Sales tax payable (due in 2 weeks) ..... . 725 Accounts receivable . .3,100 Cash... .2,000 Curent portion of long-term debt. Notes payable (due in 6 years) .. 1,800 ..... ....... .275
The following totals for the month of June were taken from the payroll register of Arcon Company: Account Debit Credit Salaries expense $13,980.00 Social security and Medicare taxes withheld 1,048.50 Income taxes withheld 333.00 Retirement savings 501.00 The entry to journalize the payment of net pay would include a a. debit to Salaries Payable for $13,980.00. b. credit to Salaries Payable for $12,097.50. c. debit to Salaries Payable for $12,097.50. d. credit to Salaries Expense for $12,097.50.