Bailey Corporation, prepares the following adjustments required at the end of the month on July 31: Before these adjustments, Bailey had assets of $70.000. Liabilities of $50,000 and Stockholders' equity of $20,000. Here are the adjustments made: a. Received a $587 utility bill for electricity usage in July to be paid in August. b. Owed wages to 2 employees who worked four days at $92 each per day at the end of July. The company will pay employees at the end of the first week of August. c On July 1, loaned money to an employee who agreed to repay the loan in one year along with $3,600 for one full year of interest. No interest has been recorded yet. After the adjustments stockholders' equity on 7/31 will be $

Bailey Corporation, prepares the following adjustments required at the end of the month on July 31: Before these adjustments, Bailey had assets of $70.000. Liabilities of $50,000 and Stockholders' equity of $20,000. Here are the adjustments made: a. Received a $587 utility bill for electricity usage in July to be paid in August. b. Owed wages to 2 employees who worked four days at $92 each per day at the end of July. The company will pay employees at the end of the first week of August. c On July 1, loaned money to an employee who agreed to repay the loan in one year along with $3,600 for one full year of interest. No interest has been recorded yet. After the adjustments stockholders' equity on 7/31 will be $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 20--, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31. Round your answers to the nearest cent. If an amount is zero, enter "0". a. November 15 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,520 $ $ $ $ Grath, John, VP Finance 137,760 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 58,800 Wie, Pam, VP Personnel 52,800 Grant, Mary, VP Secretary 45,600 b. December 31 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,520 $ $ $ $ Grath, John, VP Finance 137,760 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 58,800 Wie, Pam, VP Personnel 52,800…
At the end of April, Hernandez Company had a balance of $35,070 in the vacation benefits payable account. During May, employees earned an additional $2,730 in vacation benefits, but some employees used vacation days that amounted to $1,920 of the vacation benefits. The $1,920 was charged to Wages Expense when it was paid in May. What adjusting entry would Hernandez Company make at the end of May to bring the vacation benefits payable account up to date? If an amount box does not require an entry, leave it blank. Account Debit Credit Vacation Benefits Expense Vacation Benefits Payable Feedback Additional Vacation benefits earned less benefits paid; balance should be debited to Vacation Benefits Expense and credited to Vacation Benefits Payable.
Samuel Industries has seven employees. Each employee eams three vacation days a month. Samuel pays its employees a weekly salary of $2,750 for a five-day workweek. Requirements 1. Determine the amount of vacation expense for one month. 2. Journalize the entry to accrue the vacation expense for the month. Requirement 1. Determine the amount of vacation expense for one month. Select the correct formula and calculate Samuel Industries' vacation expense for one month. (Abbreviations used: Ees= Employees; Mo.- Month, Wk. = Week.) Mo, vacation exp. Requirement 2. Journalize the entry to accrue the vacation expense for the month. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Time Remaining: 00:35:17 Next
A company has 10 employees, each of whom earns $1,800 per month and has been employed since January 1. All wages for this period are subject to 6.2% FICA Social Security taxes and 1.45% FICA Medicare taxes. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Prepare the February 28 journal entry to record the February payroll taxes expense. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet Record employer payroll taxes. Note: Enter debits before credits. General Journal Date February 28 Payroll taxes expense FICA-Social security taxes payable FICA-Medicare taxes payable Federal unemployment taxes payable State unemployment taxes payable Debit Credit
A company’s first weekly pay period of the year ends on January 8. Sales employees earned $30,000 and office employees earned $20,000 in salaries. The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $9,000 of federal income taxes, $2,000 of medical insurance deductions, and $1,000 of pension contributions. No employee earned more than $7,000 in the first pay period. Part 1. Compute FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record the company’s January 8 (employee) payroll expenses and liabilities. Part 2. Prepare the journal entry to record the company’s (employer) payroll taxes resulting from the January 8 payroll. Its state unemployment tax rate is 5.4% on the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.
Mason Painting Services has a weekly payroll of $30,000. December 31 falls on Wednesday and Mason will pay its employees the following Monday (January 5) for the previous full week. Assume that Mason has a five-day workweek and has an unadjusted balance in Salaries Expense of $800,000. What amount should be debited to Salaries Expense on December 31? Yanıtınız: S800,000 $12,000 $18,000 O $30,000
Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurred during December are shown below. Cumulative amounts paid prior to the December 31 payroll for the persons named are also shown. a. Francis Fisher, president, gross monthly salary, $11,880, gross earnings paid prior to December 31, $130,680. b. Sandy Swartz, vice president, gross monthly salary, $10,900; gross earnings paid prior to December 31, $109,000. c. Juan Rios, independent accountant who audits the company's accounts and performs certain consulting services, $10,900, gross amount paid prior to December 31, $27,250. d. Harry House, treasurer, gross monthly salary, $5,800; gross earnings paid prior to December 31, $63,800. e. Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $1,180; amount paid to Daily Security Services prior to December 31, $11,800. Required: 1. Assume a 1.45 percent Medicare…
Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurred during December are shown below. Cumulative amounts paid prior to the December 31 payroll for the persons named are also shown. a. Francis Fisher, president, gross monthly salary, $11,910; gross earnings paid prior to December 31, $131,010. b. Sandy Swartz, vice president, gross monthly salary, $11,300; gross earnings paid prior to December 31, $113,000. c. Juan Rios, independent accountant who audits the company's accounts and performs certain consulting services, $11,060; gross amount paid prior to December 31, $27,650. d. Harry House, treasurer, gross monthly salary, $5,960; gross earnings paid prior to December 31, $65,560. e. Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $1,230; amount paid to Daily Security Services prior to December 31, $12,300. Required: 1. Assume a 1.45 percent Medicare…
The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, year 2, are the following. The company has outstanding a $50,000, 9 percent, 2-year note payable issued on July 1, year 1. Payment of the $50,000 note, plus all accrued interest for the 2-year loan period, is due in full on June 30, year 3. The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 per day. At December 31, 10 days of unbilled consulting services have been provided. Instructions Assume that on January 30, year 3, Gilbert, Marsh, & Kester receive $25,000 from Texas Oil Company in full payment of the consulting services provided in December and January. What portion of this amount constitutes revenue earned in January?
Jack Closets, Inc. employs 27 employees earning an average of $1,550 per week. The company awards each employee three weeks of vacation per year. Vacation days neither accumulate nor vest if not taken in the year earned. During the current year, 25 of Jack's employees took their 3 full weeks while the other 2 employees were unable to take any vacation this year. Prepare the journal entry necessary to record Jack's vacation pay. (Record debits first, then credits. Exclude explanations from journal entries.) Account Vacation Wage Expense Cash Current Year 116,250 116,250
Merger Company has 10 employees, each of whom earns $1,550 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Prepare the March 31 journal entry to record the March payroll taxes expense. (Round your answers to 2 decimal places.)