Math HW11 - Research Paper Example

HW#11 Start 15 Nov 2008 at 08:00 PM Due 27 Nov 2008 at 01:00 AM Access after Due Yes. Mark Late Graded: Yes E11-2On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month, $90,000, 12% note.Prepare the entry on June 1. DateDescriptionDebitCreditJune 1Bank90000Loan from First Bank 90000Prepare the adjusting entry on June 30. DateDescriptionDebitCreditJune 30Interest on Bank Loan900 Interest Payable900Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.

(List multiple debit/credit entries in descending order of amount.) DateDescriptionDebitCreditDec.1Loan from First Bank90000Interest Payable5400 Bank95400What was the total financing cost (interest expense) $5400E11-4Guyer Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2008, Guyer sells 12,000 subscriptions beginning with the December issue. Guyer prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter.

The company uses the accounts Unearned Subscriptions and Subscription Revenue.Prepare the entry in November for the receipt of the subscriptions. DateDescriptionDebitCreditNov. 30Bank240000 Unearned Subscriptions240000Prepare the adjusting entry at December 31, 2008, to record subscription revenue earned in December 2008. DateDescriptionDebitCreditDec. 31Unearned Subscriptions20000 Subscription Revenue20000Prepare the adjusting entry at March 31, 2009, to record subscription revenue earned in the first quarter of 2009.

DateDescriptionDebitCreditMar. 31Unearned Subscriptions60000 Subscription Revenue60000E11-5Hiatt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Hiatt estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2008 are as follows. MonthUnitsSoldUnits DefectivePrior to December 31November30,000600December32,000400Determine the estimated warranty liability at December 31 for the units sold in November and December.

$37200Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of $20,000.) DescriptionDebitCreditWarranty Cost37200 Liability for warranties37200(To accrue estimated warranty costs.)Liability for Warranties20000 Bank20000(To record honoring of warranty contracts.)Give the entry to record the honoring of 500 warranty contracts in January at an average cost of $20. DescriptionDebitCreditLiability for Warranties10000 Bank10000E11-8Kroger Co.

's 2005 financial statements contained the following selected data (in millions). Current assets$6,466Accounts receivable$680Total assets20,482Interest expense510Current liabilities6,715Income tax expense567Total liabilities16,092Net income958Cash210Instructions Compute these values:Working capital. (If answer is negative, please put it in parenthesis.) $(249) millionCurrent ratio. (Round answers to 2 decimal places.) 0.96E11-10Joyce Kieffer's regular hourly wage rate is $15, and she receives a wage of 1 times the regular hourly rate for work in excess of 40 hours.

During a March weekly pay period Joyce worked 42 hours. Her gross earnings prior to the current week were $6,000. Joyce is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $25 per week.Compute the following amounts for Joyce's wages for the current week. (1) Gross earnings. (2) FICA taxes. (Assume an 8% rate on maximum of $90,000.) (3) Federal income taxes withheld. (Use the withholding table in the text, page 483.) (4) State income taxes withheld.

(Assume a 2.0% rate.) (5) Net pay. (Round answers to 2 decimal places.) 1.Gross earnings$620.002.FICA taxes$49.603.Federal income taxes$70.684.State income taxes$12.405.Net pay$487.32Record Joyce's pay, assuming she is an office computer operator. (List multiple debit/credit entries in descending order of amount. Round answers to 2 decimal places.) DescriptionDebitCreditOffice Salary645.00 FICA Taxes49.60 Federal Income Tax70.68 State Income Tax12.40 Group H Insurance25.00 Bank487.32E11-13Selected data from a February payroll register for Gerfield Company are presented below.

Some amounts are intentionally omitted. Gross earnings: State income taxes$(3) Regular$8,900 Union dues100 Overtime(1) Total deductions(4) Total(2) Net pay$7,660Deductions:Accounts debited: FICA taxes$800 Warehouse wages(5) Federal income taxes1,140 Store wages$4,000FICA taxes are 8%. State income taxes are 3% of gross earnings.Fill in the missing amounts. 1.$1,1002.$10,0003.$3004.$2,3405.$6,000Journalize the February payroll and the payment of the payroll. (List multiple debit/credit entries in descending order of amount.) DateDescriptionDebitCreditFeb.

28Warehouse Wages 6000Store Wages4000 FICA Taxes800 Federal Income Taxes1140 State Income Taxes300 Union Dues100 Wages Payable7660(To record Feb. payroll.)Feb. 28Wages Payable7660 Bank7660(To record payment of payroll.)E11-14According to a payroll register summary of Ruiz Company, the amount of employees' gross pay in December was $850,000, of which $90,000 was not subject to FICA tax and $750,000 was not subject to state and federal unemployment taxes.Determine the employer's payroll tax expense for the month, using the following rates: FICA 8%, state unemployment 5.

4%, federal unemployment 0.8%. $67,000Prepare the journal entry to record December payroll tax expense. (List multiple debit/credit entries in descending order of amount.) DescriptionDebitCreditPayroll Tax Expenses67000 FICA Taxes60800 State Unemployment Taxes 5400 Federal Unemployment Taxes800P11-2AThe following are selected transactions of Winsky Company. Winsky prepares financial statements quarterly. Jan. 2Purchased merchandise on account from Yokum Company, $30,000, terms 2/10, n/30.Feb. 1Issued a 9%, 2-month, $30,000 note to Yokum in payment of account.Mar. 31Accrued interest for 2 months on Yokum note.Apr. 1Paid face value and interest on Yokum note.

July 1Purchased equipment from Korsak Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note.Sept. 30Accrued interest for 3 months on Korsak note.Oct. 1Paid face value and interest on Korsak note.Dec. 1Borrowed $15,000 from the Otago Bank by issuing a 3-month, 8% interest-bearing note with a face value of $15,000.Dec.31Recognized interest expense for 1 month on Otago Bank note.Prepare journal entries for the above transactions and events. (List multiple debit/credit entries in descending order of amount.) DateDescription/AccountDebitCreditJan.

2Purchases30000 Yokum Company30000Feb. 1Yokum Company30000 Account Notes Payable30000Mar. 31Interest450 Interest Payable450Apr. 1Account Notes Payable30000Interest Payable450 Bank30450July 1Equipment51000 Cash11000 Account Notes Payable40000Sept. 30Interest1000 Interest Payable1000Oct. 1Account Notes Payable40000Interest Payable1000 Bank41000Dec. 1Bank15000Account Notes Payable15000Dec. 31Interest100 Interest Payable100Post to the accounts Notes Payable, Interest Payable, and Interest Expense.

Notes Payable4/1300002/13000010/1400007/14000012/11500012/31 Bal.15000Interest Payable4/14503/3145010/110009/30100012/3110012/31 Bal.100Interest Expense3/314509/30100012/3110012/31 Bal.1550Show the balance sheet presentation of notes and interest payable at December 31. Current liabilities Notes payable$15000 Interest payable100$15100What is total interest expense for the year $1550Copyright 2000-2008 by John Wiley & Sons, Inc. or related companies. All rights reserved.