Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 67PB
1.
To determine
Prepare each transactions in accouting equation of Company SS.
2.
To determine
Prepare each transactions in accouting equation to show the adjustments needed for interest on the notes payable for the month of May for salary expense and payroll tax expense of Company SS.
3.
To determine
Prepare current liabilites section of the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
On June 30, 2024, Concord Ltd's general ledger contained the following liability accounts:
Accounts payable
CPP payable
$45,500
3,180
El payable
1,152
Sales tax payable
5,900
Employee income tax payable
5,530
The following selected transactions occurred during the month of July:
July
1
2
6
Issued a three-month, 6% note payable in exchange for an account payable in the amount of $13,000. Interest is due at
maturity.
Provided services for customers worth $18,000 plus HST of 13%. The company received payment in full for services
and HST.
Sold inventory for cash totalling $35,030 that also includes 13% HST. The cost of goods sold was $26,000. Concord
uses a perpetual inventory system.
10
Remitted $5,900 HST pertaining to sales tax collected in June.
15
Remitted $9,862 to the government for amounts owing from the June payroll for employee payroll deductions of
$7,600 (CPP $1,590, El $480, and employee income tax $5,530) and for employee benefits of $2,262 (CPP $1,590 and
El $672).
24
Paid…
Among the short-term obligations of Lance Company as of December 31, the balance sheet date, are notes payable totaling $250,000 with the Madison National Bank. These are 90-day notes, renewable for another 90-day period. These notes should be classified on the balance sheet of Lance Company as
a. current liabilities.
b. intermediate debt.
c. long-term liabilities.
d. deferred charges.
On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?
a.Wilson is the creditor and debits Accounts Receivable
b.Rodriguez is the borrower and debits Accounts Payable
c.Rodriguez is the creditor and credits Accounts Receivable
d.Wilson is the borrower and credits Accounts Payable
Chapter 7 Solutions
Financial Accounting
Ch. 7 - Prob. 1YTCh. 7 - Prob. 2YTCh. 7 - Prob. 3YTCh. 7 - If a 1,000 bond is selling for 95.5, how much cash...Ch. 7 - Prob. 5YTCh. 7 - Prob. 6YTCh. 7 - Prob. 7YTCh. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - What is a mortgage?
Ch. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10QCh. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 1MCQCh. 7 - All of the following are current liabilities...Ch. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQCh. 7 - A 1,000 bond with a stated rate of 8% is issued...Ch. 7 - Prob. 10MCQCh. 7 - Prob. 1SEACh. 7 - Prob. 2SEACh. 7 - Prob. 3SEACh. 7 - Prob. 4SEACh. 7 - Account for mortgages. (LO 3). Nunez Company has...Ch. 7 - Prob. 6SEACh. 7 - Account for bonds. (LO 4). If a 1,000 bound is...Ch. 7 - Prob. 8SEACh. 7 - Prob. 9SEACh. 7 - Prob. 10SEACh. 7 - Prob. 11SEACh. 7 - Prob. 12SEBCh. 7 - Prob. 13SEBCh. 7 - Prob. 14SEBCh. 7 - Prob. 15SEBCh. 7 - Account for mortgages. (LO 3). Curtain Company...Ch. 7 - Prob. 17SEBCh. 7 - Prob. 18SEBCh. 7 - Prob. 19SEBCh. 7 - Prob. 20SEBCh. 7 - Prob. 21SEBCh. 7 - Prob. 22SEBCh. 7 - Prob. 23EACh. 7 - Prob. 24EACh. 7 - Prob. 25EACh. 7 - Prob. 26EACh. 7 - Account for long-term liabilities. (LO 3, 5)....Ch. 7 - Prob. 28EACh. 7 - Prob. 29EACh. 7 - Prob. 30EACh. 7 - Prob. 31EACh. 7 - Prob. 32EACh. 7 - Prob. 33EACh. 7 - Prob. 34EACh. 7 - Prob. 35EACh. 7 - Prob. 36EACh. 7 - Prob. 37EACh. 7 - Prob. 38EACh. 7 - Prob. 39EACh. 7 - Prob. 40EACh. 7 - Prob. 41EACh. 7 - Prob. 42EBCh. 7 - Prob. 43EBCh. 7 - Prob. 44EBCh. 7 - Prob. 45EBCh. 7 - Prob. 46EBCh. 7 - Prob. 47EBCh. 7 - Prob. 48EBCh. 7 - Account for long-term liabilities. (LO 3, 5). On...Ch. 7 - Prob. 50EBCh. 7 - Prob. 51EBCh. 7 - Prob. 52EBCh. 7 - Prob. 53EBCh. 7 - Prob. 54EBCh. 7 - Prob. 55EBCh. 7 - Prob. 56EBCh. 7 - Prob. 57EBCh. 7 - Prob. 58EBCh. 7 - Prepare an amortization schedule for a bond issued...Ch. 7 - Prob. 60EBCh. 7 - Account for current liabilities. (LO 1, 5). On...Ch. 7 - Prob. 62PACh. 7 - Prob. 63PACh. 7 - Prob. 64PACh. 7 - Prob. 65PACh. 7 - Prob. 66PACh. 7 - Prob. 67PBCh. 7 - Prob. 68PBCh. 7 - Prob. 69PBCh. 7 - Prob. 70PBCh. 7 - Prob. 71PBCh. 7 - Prob. 72PBCh. 7 - Prob. 1FSACh. 7 - Prob. 2FSACh. 7 - Prob. 3FSACh. 7 - Prob. 1IECh. 7 - Prob. 2IECh. 7 - Do owners or creditors have more claims on the...Ch. 7 - Prob. 4IE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July1, 2018, the company borrowed $450,000 from the Equitable Finance Corporation and signed a promissory note.Interest at 10% is payable monthly. The company assigned specific receivables totaling $600,000 as collateral forthe loan. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned.Required:Prepare the journal entry to record the borrowing on the books of High Five Surfboard.arrow_forwardRamsay's Company Statement of Financial Position as at December 31, shows notes payable totaling $115,000 with Rednail Bank. These are 90-day notes, renewable for another 90-day period. These notes should be classified on the statement of financial position of Ramsay Company as Select one: а. non-current liabilities. O b. deferred charges. O c. intermediate debt. O d. current liabilitiesarrow_forwardTyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8 %, $35,000 note payable along with paying $2,500 in cash. July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable. _?Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 9%, $24,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 _?_ Paid the amount due on the note to Fargo Bank at the maturity date. 5. Prepare journal entries for all the preceding transactions and events. Note: Do not round your intermediate calculations. View transaction list < Journal entry worksheet 1 2 3 4 5 6 7 8 Purchased $37,500 of…arrow_forward
- On June 1, Davis Inc. issued an $89,300, 8%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30. Using a 360-day year, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar. a. $1,806 Ob. $7,144 O c. $595 Od. $1,191 Barrow_forwarda. Within the short-term obligations of Lance Company, as of December 31, 2011, the date on which the Balance Sheet is prepared, there are Notes payable to Madison National Bank in the amount of $ 250,000. They are 90-day notes, which can be renewed for an additional 90 days. These notes should be classified in the Lance Company's Statement of Situation as: Current liabilities. Deferred charges. Long-term liabilities. Intermediate obligations.arrow_forwardOn January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts Payable $44,600 Sales Taxes Payable 8,700 Unearned Service Revenue 21,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,700. 20 Sold 710 units of a new product on credit at $54 per unit, plus 5% sales tax. During January, the company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $5,200 for federal income tax, and $1,560 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume…arrow_forward
- On January 1, 2027, Wildhorse Company's accounting records contained these liability accounts. Accounts Payable $43,600 Sales Taxes Payable 7,700 Unearned Service Revenue 20,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,890, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,800. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2026, $7,700. 20 Sold 610 units of a new product on credit at $45 per unit, plus 6% sales tax. During January, the company's employees earned wages of $73,200. Withholdings related to these wages were $5,600 for FIC. $5,229 for federal income tax, and $1,569 for state income tax. The company owed no money related to these earnings for fede state unemployment tax. Assume that wages earned during January will be paid during…arrow_forwardShown below are selected transactions of Hugo company during the month of December 2021. Dec. 1 Accepted a one-year, 8% note receivable from a customer, XZ Company. The note is in settlement of an existing USD1,500 account receivable. The note, plus interest, is due in full on November 30, 2022. Dec. 8 An account receivable from YG Company in the amount of USD700 is determined to be uncollectible and is written off against the Allowance for Doubtful Accounts. Dec. 15 Unexpectedly received USD200 from VB Company in full payment of her account. The USD200 account receivable from VB Company had previously been written off as uncollectible An aging of accounts receivable indicates probable uncollectible accounts totaling USD9,000. The Allowance for Doubtful Accounts had a debit balance of USD5,210 as of November 30, 2021. Hugo Company prepares adjusting entries every month-end. How much bad debt expense should Hugo Company recognize on December 31, 2021? How much…arrow_forwardOn May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's fiscal year ends on June 30. Assume a 360- day year for your calculations. a) What is the interest EXPENSE recognized by Baker in the current fiscal year? b) What is the maturity value of the note? c) What is the maturity date of the note?arrow_forward
- On September 1, 2011, Health Wise International acquired a 12 percent, nine-month note receivablefrom Herbal Innovations, a credit customer, in settlement of a $22,000 account receivable.Prepare journal entries to record the following:a. The receipt of the note on September 1, 2011, in settlement of the account receivable.b. The adjustment to record accrued interest revenue on December 31, 2011.c. The collection of the principal and interest on May 31, 2012arrow_forwardOn August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $12,800 face value and 7% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should include a Oa. debit to Notes Receivable for $240 Ob. credit to Interest Revenue for $224 Oc. credit to Notes Receivable for $263 Od. debit to Interest Receivable for $206arrow_forwardOn January 1, 2025, the ledger of Sunland Company contained these liability accounts. Accounts Payable $43,300 Sales Taxes Payable 7,400 Unearned Service Revenue 19,800 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $5,512, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,800. (Credit Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2024, $7,400. 20 Sold 580 units of a new product on credit at $48 per unit, plus 5% sales tax. During January, the company's employees earned wages of $82,000. Withholdings related to these wages were $6,273 for FICA $5,057 for federal income tax, and $1,517 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License