ACCT 203 Lecture 12: Chapter 12
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Related Questions
According to a summary of the payroll of Mountain Streaming Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes.
Required: | |
A. | Calculate the employerâs payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. |
B. | Journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Starting Question
a. Calculate the employerâs payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Journal
b. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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The payroll register for D. Salah Company for the week ended May 18 indicated the following:
Salaries | $555,000 |
Federal income tax withheld | 111,000 |
The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $10,545 of salaries.
Required: | |||
a. Journalize the entry to record the payroll for the week of May 18.* | |||
b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.*
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Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
D. Salah Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
a. Journalize the entry to record the payroll for the week of May 18.* | |||
b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.*
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PAGE 11
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar. | 1 | Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30. |
31 | Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account. | |
Apr. | 30 | Paid Kirkwood Co. the amount owed on the note of March 31. |
Jun. | 1 | Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note. |
Jul. | 1 | Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. |
16 | Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.) | |
Aug. | 15 | Paid Triple Creek Bank the amount due on the note of July 16. |
30 | Paid Poulin Co. the amount due on the note of July 1. | |
Dec. | 1 | Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals. |
22 | Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account. | |
31 | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
Required: | |||||
1. | Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. | ||||
2. | Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
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Chart of Accounts
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar.
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ACCOUNTING EQUATION
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2. | Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
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PAGE 12
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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