FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
4th Edition
ISBN: 9781259934773
Author: SPICELAND
Publisher: MCG
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Chapter 1, Problem 1.5BP
Tar Heel Corporation provides the following information at the end of 2018.
Prepare financial statements (LO1–3)
| Salaries payable to workers at the end of the year | $ 3,300 |
| Advertising expense for the year | 10,400 |
| Building that has been purchased | 80,000 |
| Supplies at the end of the year | 4,600 |
| 40,000 | |
| Utility expense for the year | 6,000 |
| Note payable to the bank | 25,000 |
| Service revenue earned during the year | 69,400 |
| Salary expense for the year | 26,700 |
| Accounts payable to suppliers | 7,700 |
| Dividends paid to shareholders during the year Common stock that has been issued, including | ( ? ) |
| $6,000 that was issued this year | 27,000 |
| Cash remaining | 5,200 |
| Interest expense for the year | 2,100 |
| 13,200 |
Required:
Prepare the income statement, statement of stockholders’ equity, and
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1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: Salaries:
Sales salaries $625,000Warehouse salaries $240,000Office salaries $320,000
Total $1,185,000
Deductions:
Federal income tax withheld $232,260Social security tax withheld $71,100Medicare tax withheld $17,775Retirement savings $35,500Group insurance $53,325
Total $409,960
Tax rates assumed: Social security, 6% Medicare, 1.5%State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6%
Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December…
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Chapter 1 Solutions
FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
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