ch13 demonstration problem solutions

ch13 demonstration problem solutions - W eeks 1& 4 W...

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Unformatted text preview: W eeks 1& 4 W eekly wages subject to: J1 On M ay 1, the corporation bor owed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due one year from M ay 1. State Federal Date Description Dr. Cr. On August 1, the board of directors declared a $300,000 cash dividend that was payable on Septem ber 10 to stockholders of record on August 31. W eekly unem ploy unem ploy FICA W eeks 1&4 W age Expense 1,040.00 M ake al the journal entries neces ary to record the transactions above using appropriate dates. Em ployee W age withholding union dues Tax Tax Tax Fed W ithholding 104.00 Union Dues 20.80 J1 M ark Ham il 200 $200.00 $200.00 $200.00 $200.00 $200.00 FICA Payable 79.56 Date Description Dr. Cr. 1 Purchases 70000 K aren Robbins 150 150.00 150.00 150.00 150.00 150.00 Cash 835.64 ### Purchases 68,600 Discount 1400 Brent K irk 110 110.00 110.00 110.00 110.00 110.00 Accounts Payable 68,600 Net of Discount 68600 Alec Guinnes 250 250.00 250.00 - - 250.00 Payrol taxes 94.74 ### Accounts Payable 68,600 K en Sprouse 330 330.00 330.00 - - 330.00 State unem ploy. 11.50 Discounts Lost 1,400 Total 1,040.00 1,040.00 1,040.00 460.00 460.00 1,040.00 Fed unem ploy. 3.68 Cash 70,000 Rate 10.00% 2.00% 2.50% 0.80% 7.65% FICA Payable 79.56 ### Equipm ent 50,000 Am ount $104.00 $20.80 $11.50 $3.68 $79.56 Cash 4,000 Note Payable 46,000 3 Note Payable 92000 W eeks 2& 3 ### Cash 83,000 cash received 83000 W eekly wages subject to: J1 Discount on Note Payable 9,000 discount on note 9000 State Federal Date Description Dr. Cr. Note Payable 92,000 W eekly Vacation unem ploy unem ploy FICA W eek 2&3 W age Expense 450.00 ### Dividends 300,000 Em ployee W age W ages withholding union dues Tax Tax Tax Accrued Vacation Pay 590.00 Dividends Payable 300,000 Fed W ithholding 104.00 ### Interest Expense 4,140 ($46,000 x 12% x 9/12 = $4,140) M ark Ham il 200 $200.00 $200.00 $200.00 $200.00 $200.00 Union Dues 20.80 Interest Payable 4,140 K aren Robbins 150 150.00 150.00 150.00 150.00 150.00 FICA Payable 79.56 Interest Expense 6,000 ($9,000 x 8/12 = $6,000) Brent K irk 110 110.00 110.00 110.00 110.00 110.00 Cash 245.64 Discount on N/P 6,000 Alec Guinnes 250 250.00 250.00 - - 250.00 Under application of the expense war anty accrual m ethod for: K en Sprouse 330 330.00 330.00 - - 330.00 Payrol taxes 94.74 Sale of m achinery in 2010....
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This note was uploaded on 01/26/2010 for the course ACC 301 taught by Professor Acc during the Fall '08 term at Central Mich..

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ch13 demonstration problem solutions - W eeks 1& 4 W...

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