chapter_9_solution - Homework #8 Chapter 9 Homework...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework #8 Chapter 9 Homework Problems E9-2 Recording Payroll Costs LO1 Warner Company completed the salary and wage payroll for March 2006. The payroll provided the following details: Salaries and wages earned $241,500 Employee income taxes withheld 44,040 Insurance premiums withheld 1,040 FICA taxes* 18,475 *$18,475 each for employer and employees. Required: 1. Give the journal entry to record the payroll for March including employee deductions. 2. Give the journal entry to record the employer's payroll taxes. 3. Give a combined journal entry to show the payment of amounts owed to governmental agencies. 1. March 31 Salary and wage expense 241,500 Liability for income taxes withheld-employees 44,040 Liability for insurance premiums withheld-employees 1,040 FICA taxes payable-employees 18,475 Cash 177,945 Payroll for March including employee deductions. 2. March 31, 2006: Payroll tax expense 18,475 FICA taxes payable-employer 18,475 Employer payroll taxes on March payroll. 3. Liability for income taxes withheld-employees 44,040
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Liability for insurance premiums withheld-employees 1,040 FICA taxes payable-employees 18,475 FICA taxes payable-employer 18,475 Cash 82,030 Remittance of payroll taxes and deductions for March payroll. E9-4 Recording a Note Payable through Its Time to Maturity with Discussion of Management Strategy LO1, 4 Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Neiman Marcus is one of America's most prestigious retailers. Each Christmas, Neiman Marcus builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, Neiman Marcus often collects cash from the sales several months after Christmas. Assume that on November 1, 2006, Neiman Marcus borrowed $6.8 million cash from Texas Capital Bank for working capital purposes and signed an interest- bearing note due in six months. The interest rate was 7 percent per annum payable at maturity. The accounting period ends December 31.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/02/2009 for the course AEM 2210 taught by Professor Little,j. during the Spring '07 term at Cornell University (Engineering School).

Page1 / 7

chapter_9_solution - Homework #8 Chapter 9 Homework...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online