Charger Inc. had the following items that require adjusting entries at thể enda. Charger pays its employees $4,000 every Friday for a 5-day work week. This year December 31 fals on a Wednesdayb. Charger eamed income of $740,000 for the year for tax purposes. Its effective tax rate is 40%. These taxes must be paid by April 15 of nextyear.

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

a Charger pays its employees $4,000 every Friday for a 5-day work week. This year December 31 tals on a Wednesday b. Charger eamed income of $740,000 for the year for tax purposes. ts effective tax rate is 40%. These taxes must be paid by April 15 of next

a Charger pays its employees $4,000 every Friday for a 5-day work week. This year December 31 tals on a Wednesday b. Charger eamed income of $740,000 for the year for tax purposes. ts effective tax rate is 40%. These taxes must be paid by April 15 of next

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 7RE: Wallace Corporation summarizes the following information from its weekly payroll records during...

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Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Wallace Corporation summarizes the following information from its weekly payroll records during April. Prepare the two journal entries to record the payment of the payroll and the accrual of its payroll taxes for April. Assume an 8% FICA rate for both employees and the employer. Also assume a 5.4% state unemployment tax rate, a 0.6% federal unemployment tax rate, and that all wages are subject to all payroll taxes. Round to the nearest dollar.
Vulcan Company is a monthly depositor whose tax liability for March 20-- is $3,200. 1. What is the due date for the deposit of these taxes?April 15 2. Assume that no deposit was made until April 29 (14 days late). Compute the following penalties. Assume a 365-day year in your computations. Round your answers to the nearest cent. a. Penalty for failure to make timely deposit. $ b. Penalty for failure to fully pay tax. $ c. Interest on taxes due and unpaid (assume a 6% interest rate). $ d. Total penalty imposed.
Charger Inc. had the following items that require adjusting entries at the end of the year. a. Charger pays its employees $4,000 every Friday for a 5-day work week. This year December 31 falls on a Wednesday. b. Charger earned income of $790,000 for the year for tax purposes. Its effective tax rate is 35%. These taxes must be paid by April 15 of next year. c. Charger borrowed $240,000 with a note payable dated August 1. This note specifies 6%. The interest and principal are due on March 31 of the following year. d. Charger’s president earns a bonus equal to 10% of income in excess of $620,000. Income for the year was $790,000. This bonus is paid in May of the following year and any expense is charged to wages expense. Required: Prepare the adjusting journal entries to record these transactions at the end of the current year.
Cee & Co.’s fiscal year begins April 1. At the beginning of its fiscal year, Cee & Co. estimates that it will owe $17,400 in property taxes for the year. On June 1, its property taxes are assessed at $17,000, which it pays immediately. Required: 1. Prepare the related journal entries for April 1, May 1, and June 1. 2. Then compute the monthly property tax expense that Cee & Co. would record during July through March.
Sera Corporation has made and recorded its quarterly income tax payments. After a final review of taxesfor the year, the company identifies an additional $40,000 of income tax expense that should be recorded.A portion of this additional expense, $6,000, is deferred for payment in future years. Record Sera’s yearendadjusting entry for income tax expense.
Vulcan Company is a monthly depositor whose tax liability for March 20-- is $3,130. 1. What is the due date for the deposit of these taxes? 2. Assume that no deposit was made until April 29 (14 days late). Compute the following penalties. Assume a 365-day year in your computations. Round your answers to the nearest cent. a. Penalty for failure to make timely deposit. $fill in the blank 2 b. Penalty for failure to fully pay tax. $fill in the blank 3 c. Interest on taxes due and unpaid (assume a 6% interest rate). $fill in the blank 4 d. Total penalty imposed.
Pierce Corp. has a December 31 year end. It received its property tax invoice of $33,000 for the calendar year on April 30. The invoice is payable on June 30. Prepare the journal entries to record the property tax on (a) April 30, (b) June 30, and (c) December 31, assuming the company adjusts its accounts annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit eTextbook and Media
Instructions Charger Inc. had the following items that require adjusting entries at the end of the year. a. Charger pays its employees 54,000 every Friday for a 5-day work week. This year December 31 falls on a Wednesday. b. Charger earned income of S790,000 for the year for tax purposes. Its effective tax rate is 35%. These taxes must be paid by April 15 of next year. c. Charger borrowed $240,000 with a note payable dated August 1. This note specifies 6%. The interest and principal are due on March 31 of the following year. d. Charger's president earns a bonus equal to 10% of income in excess of $620,000. Income for the year was $790,000. This bonus is paid in May of the following year and any expense is charged to wages expense. Required: Prepare the adjusting journal entries to record these transactions at the end of the current year.
Real estate tax is levied for the calendar year from Jan 1 to Dec 31 and is payable in the following year (in arrears). The accrued portion is for the period from Jan 1 through the date of closing (the closing-day tax is the seller's responsibility). A sale is to be closed on June 8 using a Banker's Year (360 days, 30 day months) Please use the real estate tax amount of $10,800 to calculate the prorated amount of taxes that would result at closing and how they would be distributed. $6,060 is credited to the seller and debited to the buyer $4,740 is debited to the seller and credited to the buyer $6,060 is debited to the seller and credited to the buyer $4,740 is credited to the seller and debited to the buyer