Chapter8 - E 8-17A (10-15 min.) Journal DATE ACCOUNT TITLES...

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(10-15 min.) E 8-17A Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 2010 Oct. 1 Cash…………………………………………. 1,512 Unearned Subscription Revenue……. 1,400 Sales Tax Payable ($1,400 × .08) ……. . 112 Nov. 15 Sales Tax Payable………………………… 112 Cash………………………………………. 112 Dec. 31 Unearned Subscription Revenue………. 350 Subscription Revenue ($1,400 × 3/12) 350 BALANCE SHEET Current liabilities: Unearned subscription revenue ($1,400 $350)…… $1,050
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(10 min.) E 8-18A INCOME STATEMENT Expenses: Payroll expense………………………………………. $200,000 Payroll tax expense ($200,000 × .08) ……………… 16,000 BALANCE SHEET Current liabilities: Salary payable………………………………………… $ 8,100 Payroll tax payable…………………………………. .. 800
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(5-10 min.) E 8-19A Req. 1 Interest to accrue at = $83,000 × .06 × 8/12 = $3,320 Dec. 31, 2010 Req. 2 Final payment = $83,000 + ($83,000 × .06) = $87,980 on May 1, 2011 Req. 3 Interest expense for: 2010 = $83,000 × .06 × 8/12 = $3,320 2011 = $83,000 × .06 × 4/12 = $1,660
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(10-15 min.) E 8-20A Souza’s balance sheet at December 31, 2011, reported: Income tax payable…………………………………. .. $242,000* Young’s 2011 income statement reported: Income tax expense ($1,200,000 × .36)…………… $432,000 _____ * Beginning income tax payable……………………. . $180,000 + Income tax expense (and payable) for the year ($1,200,000 × .36) ……………………………… 432,000 Income tax payments during the year……………. (370,000 ) = Ending income tax payable………………………… $242,000
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(15-20 min.) E 8-23A McKinley Electronics Balance Sheet (partial) June 30, 2010 Current liabilities: a. Estimated warranty payable [$34,000 + ($2,200,000 × .07) $50,000]……… $138,000 b. Current portion of long-term note payable……. .. 13,750 Interest payable ($55,000 × .06 × 1/12)…………… 275 c. Unearned sales revenue ($125,000 $70,000)…. 55,000 d. Employee withheld income tax payable………… 30,000 FICA tax payable ($260,000 × .0765)……………… 19,890 Total current liabilities…………………………. . $256,915 Long-term liabilities: Note payable ($55,000 $13,750)……………. .. $41,250
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(10-15 min.) E 8-24A Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 2010 a. Jan. 31 Cash ($13,000,000 × 0.94). .…………… 12,220,000 Discount on Bonds Payable…………. 780,000 Bonds Payable……………………… 13,000,000 To issue bonds at a discount. b. July
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This note was uploaded on 09/16/2011 for the course ACG 2021 taught by Professor Hornik during the Spring '08 term at University of Central Florida.

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Chapter8 - E 8-17A (10-15 min.) Journal DATE ACCOUNT TITLES...

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