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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Chapter 7, Problem 7.7E
Exercise 7.7
LO 4
Other accrued liabilities-payroll taxes At March 31, 2016, the end of the first year of operations at Lukancic, Inc., the firm’s accountant neglected to accrue payroll taxes of $9,600 that were applicable to payrolls for the year then ended.
Required:
- Use the horizontal model (or write the
journal entry ) to show the effect of the accrual that should have been made as of March 31, 2016. - Determine the income statement and
balance sheet effects of not accruing payroll taxes at March 31, 2016. - Assume that when the payroll taxes were paid in April 2016, the payroll tax expense account was charged. Assume that at March 31, 2017, the accountant again neglected to accrue the payroll tax liability’, which was $10,000 at that date. Determine the income statement and balance sheet effects of not accruing payroll taxes at March 31, 2017.
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Students have asked these similar questions
Exercise 11.4 (Algo) Depositing federal unemployment tax. LO 11-6
On March 31, the Federal Unemployment Tax Payable account in the general ledger of The Argosy
Company showed a balance of $1,491. This represents the FUTA tax owed for the first quarter of the year.
On April 30, the firm deposited the amount owed in the First Security National Bank. Record this transaction
in general journal form.
View transaction list
Journal entry worksheet
1
Record entry for FUTA deposited.
vroll taxes LO 4
layed below.}
at Lukancic Inc., the firm's accountant neglected to
ayrolls for the year then ended.
that should have been made as of March 31, 2019. Indicate the
to indicate a negative financial statement effect.)
Answer is not complete.
Income Statement
Stockholders'
Equity
ties
Net Income
Revenues
(6,370)
Cash
6,370 X
17
A small business recently discovered that a material error in payroll resulted in the company not recording overtime paid in the last year's financial statement. The unpaid overtime was for $13,000 The company's income tax rate is 20%
What is a part of the current year's journal entry to correct the material error on last year's financial statements?
Ⓒ Credit Retained Earnings for $13,000
O Debit Retained Earnings for $10,400
O Debit Net Income for $10,400
O Credit Net Income for $13,000
Chapter 7 Solutions
Accounting: What the Numbers Mean
Ch. 7 - Prob. 7.1MECh. 7 - Mini-Exercise 7.2 LO 4 Other accrued...Ch. 7 - Mini-Exercise 7.3 LO 5 Other accrued...Ch. 7 - Prob. 7.4MECh. 7 - Exercise 7.5 LO 2 Notes payable-discount basis On...Ch. 7 - Prob. 7.6ECh. 7 - Exercise 7.7 LO 4 Other accrued...Ch. 7 - Exercise 7.8 LO 5 Other accrued liabilities-real...Ch. 7 - Exercise 7.9 LO 5 Other accrued...Ch. 7 - Exercise 7.10 LO 5 Other accrued...
Ch. 7 - Exercise 7.11 LO 3 Unearned revenues-customer...Ch. 7 - Exercise 7.12 LO 3 Unearned revenues-ticket sales...Ch. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Exercise 7.21 LO 4. 5, 8 Transaction...Ch. 7 - Prob. 7.22ECh. 7 - Prob. 7.23ECh. 7 - Prob. 7.24ECh. 7 - Prob. 7.25PCh. 7 - Problem 7.26 LO 3 Unearned revenues-subscription...Ch. 7 - Prob. 7.27PCh. 7 - Prob. 7.28PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33CCh. 7 - Prob. 7.34CCh. 7 - Prob. 7.35C
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