Answered: A company made no adjusting entry for…

A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which o following statements is true?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 7EA: Reviewing payroll records indicates that employee salaries that are due to be paid on January 3...

See similar textbooks

Related questions

Q: SQU Company paid the weekly payroll on January 2 by debiting Wages Expense for $27,000. The…

A: Journal: Journal is the method of recording monetary business transactions in chronological order.…

Q: Reviewing payroll records indicates that employee salaries that are due to be paid on January 3…

A: Journal: Recording of a business transactions in a chronological order.

Q: . The following totals for the month of April were taken from the payroll register of Sanson Corp.:…

A: Payroll expenses are expenses related with the salaries of the employees. For their accrual,…

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Social security tax deduction = Gross payroll x Social security rate = $19,352 x 6% = $1161.12…

Q: Reviewing payroll records indicates that one-fifth of employee salaries that are due to be paid on…

A: Journal: Recording of a business transactions in a chronological order.

Q: The following information as to earnings and deductions for the weekly pay period ended March 9 was…

A: Payroll register include gross salary payable to all employees and statutory deductions on account…

Q: This problem challenges you to apply your cumulative accounting knowledge to move a step beyond the…

A: Journal entries are the initial step of accounting cycle to record the financial transactions in the…

Q: Refer to Exhibit 6-1. Journalize the adjustment for accrued wages for the following Monday, which…

A: Accrued expenses: Accrued expenses are the expenses that have been incurred but have not been paid…

Q: Assuming no employees are subject to ceilings for their earnings, Jenkins Company has the following…

A: Social security and Medicare tax rates are based on gross payroll. The federal income tax withheld,…

Q: Journalize the adjustment for accrued wages for the following Monday, which is the end of the…

Q: The information on earnings and deductions for the pay period ended December 14 from King Company's…

A: Compute the total taxable earnings for unemployment, social security and Medicare.

Q: The totals from the first payroll of the year are shown below. Total Earnings FICA OASDI FICA HI…

A: Given gross pay = $7,475 In order to record accrued expenses, the expense which has been incurred…

Q: Reviewing payroll records indicates that employee salaries that are due to be paid on January 3…

A: Payroll records are archives or documents that have anything to do with an employee's check. The…

Q: EA7. LO 4.3 Reviewing payroll records indicates that employee salaries that are due to be paid on…

A: Definition:

Q: Accrued salaries at December 31 amounted to $31,560. Ignore related payroll liabilities. Salaries…

A: The objective of the question is to determine the adjusting entry for accrued salaries at the end of…

Q: Lee Company has the following information for the pay period of December 15–31: Gross payroll…

A: Option “c” is the correct option.

Q: The information for Titan Company, shown in the following chart, is available from Titan's time…

A: SOCIAL SECURITY TAX CAN BE COMPUTED AS FOLLOWS SST=TOTAL EARNINGS - ACCOUNTS RECEIVABLE FOR A…

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Social security tax = Gross payroll × 6% Federal unemployment tax and state unemployment tax are not…

Q: Accounting The following totals for the month of June were taken from the payroll register of Mike…

A: Answer:- Net Payroll meaning:- Net payroll can be defined as the amount taken home by the employees…

Q: Gross payroll $19,738 Federal income tax withheld $2,900 Social security rate 6% Federal…

A: Salary payable = Gross Payroll - Federal Income Tax withheld - Social security tax - Medicare -…

Q: adjusting journal entry t

A: Since the salary due to be paid on January 3 includes the amount relating to December 31, the…

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Federal income taxes are imposed in USA. The income tax is determined by applying tax rate which…

Q: Reviewing payroll records indicates that employee salaries that are due to be paid on January 3…

A: Salaries for the last of December belongs to that year and will be recorded as an expense on…

Q: In a recent pay period, Blue Company employees have gross salaries of $18,960. Total deductions are:…

A: Please find the calculations of the Company's total payroll expense in Step 2 below.

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Salaries payable is the amount of salary which is due but not yet paid.

Q: Marin Company's gross pay for the week ended August 22 totalled $71,200, from which $3,880 was…

A: Payroll: It implies a process of making payment to the employees of the business in the form of…

Q: Nix Company paid a premium of $420 for workers’ compensation insurance based on the estimated…

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

Q: Irina Company pays its employees weekly. The last pay period for 20-1 was on December 28. From…

A: Accounting is the process of recording, classifying and summarising accounting transactions.…

Q: Northwest Company determined that it has an obligation relating to employees' rights to receive…

A: Compensated absence refers to employee absence with payment, which arises from holidays, sick…

Q: Larkspur Enterprises' payroll for the month ended March 31, 2024, is shown below. Salaries for the…

A: The payroll expense for the month is the expense which has been incurred by the employee and in…

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Salaries payable are calculated by deducting social security rate, Medicare rate and Federal income…

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Answer The emploer payroll tax expense is sum of Social Security tax Medicare tax Federal…

Q: Sheffield Consulting Inc's gross salaries for the biweekly period ended August 24 were $12,500.…

A: Salaries expenses include the following deduction = CPP Payable + EI payable + income tax payable…

Q: 7. For the past 3 years, Xavier, Inc., has failed to accrue unpaid wages earned by workers during…

A: Workings: Failed to accrue unpaid wages earned.

Q: Dana Co.'s officers' compensation expense account had a balance of $224,000 at December 31, 20X4…

A: Income statement shows whether a company is making profit or loss for a particular time period.

Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which o
following statements is true?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Adjusting entries

VIEW

Step 2: Adjusting entry

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Reviewing payroll records indicates that employee salaries that are due to be paid on January 3 include $3,575 in wages for the last week of December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, make the December 31 adjusting journal entry to bring the balances to correct.
Qw0006
Please don't give image format
Records showed that as of December 31, 2020, accrued salaries payable of P21,000 were not recorded in Company’s books. In addition, office supplies on hand of P9,000 at December 31, 2020 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. What is the effect of these two errors? A. 2020 net income and December 31, 2020 accumulated profits are understated by P9,000 each. B. 2019 net income is overstated by P12,000 and 2020 net income is understated by P9,000 C. 2019 net income and December 31, 2019 accumulated profits are understated by P21,000 each. D. 2020 net income is understated by P30,000 and January 1, 2021 accumulated profits is understated by P9,000
your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error? Question 2: Which of the following accounts is(are) overstated by P 50,000 at the end of year 2023 as a result of the error? Question 3: What would be the adjusting entry if the error is discovered in year 2022? Question 4: What would be the adjusting entry if the error is discovered in year 2023? Question 5: What would be the adjusting entry if the error is discovered in year 2024?
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31. Gross payroll $16,376 Federal income tax withheld $2,472 Social security rate 6% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of Oa. $11,660.49 Ob. $12,675.80 Oc. $16,376.00 Od. $12,888.69 ( Previous
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31. Gross payroll| $19,738 Federal income tax withheld $2,900 Social security rate 6% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of Oa. $15,614.24 Ob. $19,738.00 Oc. $14,133.89 Od. $15,357.65
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31. Gross payroll $13,922 Federal income tax withheld $2,432 Social security rate 6% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of a. $10,626.84 Ob. $13,922.00 Oc. $9,582.69 Od. $10,445.85
Clock Company showed the following errors in their account during December 31, 2021: Dividends of P 100,000 had been declared but was not recorded on December 10, 2021. Buildings and equipment maintenance for P 480,000 had been debited to expense at the end of April 2020. It had an estimated life of 8 years. The company failed to record sales commissions payable amounting to P 10,500 and P 19,000 at the end of 2020 and 2021, respectively. Supplies on hand amounting to P 6,000 and P 15,000 were not recognized at the end of 2020 and 2021, respectively. What is the net effect of the error in the 2021 net income? a.P 59,500 over b.P 72,200 under c.P 75,000 over d.P 70,000 over
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15–31. Gross payroll $19,352 Federal income tax withheld $2,825 Social security rate 6% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of a.$19,352.00 b.$15,075.60 c.$13,875.78 d.$15,327.18
What is the net effect of the errors on the December 31, 2021 retained earnings?( Leave the numerical figure positive, put a dash then identify if OVERSTATED or UNDERSTATED, example: 25000-OVERSTATED)
Solstice Company determines on October 1 that it cannot collect $61,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1.