9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 2, Problem 2.21E

Reversing entries

• Appendix 2B

The employees of Xitrex, Inc., are paid each Friday. The company’s fiscal year-end is June 30, which falls on a Wednesday for the current year. Salaries and wages are earned evenly throughout the five-day work week, and $10,000 will be paid on Friday, July 2.

Required:

1. Prepare an adjusting entry to record the accrued salaries and wages as of June 30, a reversing entry on July 1, and an entry to record the payment of salaries and wages on July 2.

2. Prepare journal entries to record the accrued salaries and wages as of June 30 and the payment of salaries and wages on July 2 assuming a reversing entry is not recorded.

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Chapter 2, Problem 2.20E

Chapter 2, Problem 2.22E

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The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Deductions: $402,000 Sales salaries Income tax withheld $135,975 Social security tax withheld 46,620 Warehouse salaries 210,000 Office salaries Medicare tax withheld 165,000 11,655 Retirement savings $777,000 17,094 Group insurance 13,986 $225,330 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6%

Question text Lidge Company of Texas (TX) is classified as a monthly depositor and pays its employees monthly. The following payroll information is for the second quarter of 20--. WITHHOLDINGS EMPLOYER'S Wages OASDI HI FIT OASDI HI April $86,100 $ 5,338.20 $1,248.46 $ 9,650 $ 5,338.20 $1,248.45 May 92,500 5,735.00 1,341.26 10,005 5,735.00 1,341.25 June 73,400 4,550.80 1,064.30 8,995 4,550.80 1,064.30 Totals $252,000 $15,624.00 $3,654.02 $28,650 $15,624.00 $3,654.00 The number of employees on June 12, 20-- was 11. a. Complete the following portion of Form 941. What are the payment due dates of each of the monthly liabilities assuming all deposits were made on time, and the due date of the filing of Form 941 (year 20--)?

1 General Journal 2 Instruction Journalize the entries for the payroll and the employer's payroll tax expense on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. 3 An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; all earnings are subject to social security tax; social security tax rate, 6.0%; Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. 4 Required: Journalize the entries for the payroll and the employer's payroll tax expense. Refer to the Chart of Accounts for exact wording of account titles. DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING EQUATION ASSETS PAGE 1 LIABILITIES EQUITY X

Chapter 2 Solutions

Intermediate Accounting

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Solution Summary: The author explains the accounting rules for journal entries to correct or adjust the revenue and expense accounts, to concede with the accrual principle of accounting.

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