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ACC125 - $11-11 What are some of the important elements of...

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Unformatted text preview: $11-11. What are some of the important elements of good internal control to safeguard payroll disbursements? 511-12. Hi Range Sports’ payroll register for the week ended December 31, 200?, included these totals: ——————————_______________ Withholding Deductions Federal Habitat Gross Income FICA for Net Pay Tax Tax Humanity Total Pay $ 8,000 $ 750 $ 612 $ 110 $ 1,472 $ 6,528 ———————______________ In addition to the payroll liabilities shown, Hi Range Sports has the following current liabilities at December 31, 2007: A ccounts Payable .............................................................. $44,000 FICA Tax Payable (employer portion) ............................. 612 ——————_____________ Prepare the current liabilities section of Hi Range‘s balance sheet at December 31, 2007. List current liabilities in descending order, starting with the largest first, including the payroll liabilities. Show total current liabilities. l $11-13. Using the current liability amounts from 811-12 and assuming that current assets total $62,000, calculate the following for Hi Range Sports: 1. Current ratio 2. Working capital Exercises at E11-14. Make journal entries to record the following transactions. Explanations are not required. Mar. 31 Recorded cash sales of $200,000 for the month, plus sales tax of 4% collected for the state of Illinois. Apr. 6 Sent March sales tax to the state; it E1‘l-15. Record the following note payable transactions of Lisbon Corp. in the company’s journal. Explanations are not required. 2006 May 1 Purchased equipment costing $15,000 by issuing a one-year, 6% note payable. Dec. 3 1 Accrued interest on the note payable. contin med ..... ...
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