Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 4.17E
Exercise 4.17
LO 6, 7
Effect of adjustments on net income Assume that Cater Co.’s accountant neglected to record the payroll expense accrual adjustment at the end of October.
Required:
- Explain the effect of this omission on net income reported for October.
- Explain the effect of this omission on net income reported for November.
- Explain the effect of this omission on total net income for the two months of October and November taken together.
- Explain why the accrual adjustment should have been recorded as of October 31.
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Exercise 7-7 (Algo) Other accrued liabilities—payroll taxes LO 4
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[The following information applies to the questions displayed below.]At March 31, 2019, the end of the first year of operations at Lukancic Inc., the firm’s accountant neglected to accrue payroll taxes of $6,370 that were applicable to payrolls for the year then ended.
Exercise 7-7 (Algo) Part c
c. Assume that when the payroll taxes were paid in April 2019, the payroll tax expense account was charged. Assume that at March 31, 2020, the accountant again neglected to accrue the payroll tax liability, which was $6,587 at that date. Determine the income statement and balance sheet effects of not accruing payroll taxes at March 31, 2020.Effect on net income for year ended March 31, 2020:
Problem 11.1A (Static) Computing and recording employer's payroll tax expense. LO 11-2,
11-6
The payroll register of Exterior Cleaning Company showed total employee earnings of $5,000 for the payroll period
ended July 14.
Required:
1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the
social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All
earnings are taxable.
2. Prepare a general journal entry to record the employer's payroll taxes for the period.
Analyze:
Which of the above taxes are paid by the employee and matched by the employer?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Analyze
Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security
tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable.…
Question 15
An auditor is required to confirm accounts receivable if the accounts receivable balances are:
Older than one year
Material to the financial statements
Smaller than expected
Subject to valuation estimated
Chapter 4 Solutions
Accounting: What the Numbers Mean
Ch. 4 - Prob. 4.1MECh. 4 - Mini-Exercise 4.2 LO 2, 6, 7 Record transactions...Ch. 4 - Prob. 4.3MECh. 4 - Prob. 4.4MECh. 4 - Exercise 4.5 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.6 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.7 LO 6 Write journal entries Write the...Ch. 4 - Exercise 4.8 LQ 6 Write journal entries Write the...Ch. 4 - Exercise 4.9 LO 2, 6, 7 Record transactions and...Ch. 4 - Exercise 4.10 LO 2. 6, 7 Record transactions and...
Ch. 4 - Exercise 4.11 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.12 LO 2, 6, 7 Record transactions and...Ch. 4 - Exercise 4.13 LO 3 Calculate retained earnings On...Ch. 4 - Prob. 4.14ECh. 4 - Exercise 4.15 LO 6 . 7 Notes receivable-interest...Ch. 4 - Exercise 4.16 LO 6, 7 Notes payable-interest...Ch. 4 - Exercise 4.17 LO 6, 7 Effect of adjustments on net...Ch. 4 - Exercise 4.18 LO 6, 7 Effects of adjustments A...Ch. 4 - Exercise 4.19 LO 6 , 7 T-account analysis Answer...Ch. 4 - Exercise 4.20 LO 6, 7 Transaction analysis using...Ch. 4 - Problem 4.21 LO 2, 6, 7 Record transactions and...Ch. 4 - Prob. 4.22PCh. 4 - Prob. 4.23PCh. 4 - Problem 4.24 LO 6. 7 Calculate income from...Ch. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Problem 4.27 LO 6. 7 Analyze several accounts...Ch. 4 - Prob. 4.28PCh. 4 - Case 4.29LO 6, 7Capstone analytical review of...Ch. 4 - Prob. 4.30C
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Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 26. Journalized the entry to record payroll taxes on employees' earnings of December 26: social security tax, SI,455; Medicare tax, 364; state unemployment tax, SI50; federal unemployment tax, S40. 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. 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How JOURNAL ENTRIES Work (in Accounting); Author: Accounting Stuff;https://www.youtube.com/watch?v=Y-_Q3rANyxU;License: Standard Youtube License