Sanborn Company has 10 employees, who earn a total of $2,900 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, Is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is: Multiple Choice Debit Salaries Expense, $5,800; credit Salaries Payable, $5,800. Debit Salaries Expense, $8,700; credit Cash, $8,700. Debit Salaries Expense, $8,700; credit Salaries Payable, $8,700. Debit Salaries Payable, $8,700; credit Salaries Expense, $8,700. Debit Salaries Expense, $14,500; credit Salaries Payable, $14,500.

Sanborn Company has 10 employees, who earn a total of $2,900 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, Is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is: Multiple Choice Debit Salaries Expense, $5,800; credit Salaries Payable, $5,800. Debit Salaries Expense, $8,700; credit Cash, $8,700. Debit Salaries Expense, $8,700; credit Salaries Payable, $8,700. Debit Salaries Payable, $8,700; credit Salaries Expense, $8,700. Debit Salaries Expense, $14,500; credit Salaries Payable, $14,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Turner Empire Co. employs 65 employees. The employees are paid every Monday for work done from the previous Monday to the end-of-business on Friday, or a 5-day work week. Each employee earns $80 per day. Required: 1. Calculate the total weekly payroll cost and the salary adjustment at March 31, 2016. 2. Prepare the adjusting entry at March 31, 2016. 3. Prepare the subsequent cash entry on April 4, 2016.
River Signorini works for New & Old Apparel, which pays employees on a semimonthly basis. River's annual salary is $179,500. Required: Calculate the following: Note: Round your final answers to 2 decimal places. Pay Date October 15 December 31 Prior YTD Earnings Social Security Taxable Wages Medicare Taxable Wages Employer Share Social Security Tax Employer Share Medicare Tax
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 $152,280 $ $ $ $ Grath, John, VP Finance 137,400 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 55,200 Wie, Pam, VP Personnel 45,600 Grant, Mary, VP Secretary 37,200 b. December 31 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,280 $ $ $ $ Grath, John, VP Finance 137,400 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 55,200 Wie, Pam, VP Personnel 45,600…
PART A:Silver Records has 4 employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At November 30, each employee is owed gross pay of $2,250, but each one must have 10% of their pay withheld for income taxes. Each must also make CPP contributions of 5.1% of their gross pay and pay EI premiums of 1.62% of their gross pay. Required: Prepare a single journal entry required to record the accrual of payroll on November 30 Prepare the journal entry to record the related employer’s liability on November 30 PART B:Superb Industries borrowed money by issuing a $30,000, 6%, 10-year bond. The Assume that Superb Industries issued the bond on April 1, 2021 at a price of $27,868. The market interest rate on April 1 was 7%. Superb’s accounting year ends on September 30. Required:Journalize the following transactions for Superb Industries: Issuance of the bonds on April 1, 2021 Accrual of interest expense and amortization of bonds on September…
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…
Majan Company paid employee wages on Friday, March 25, and the next payroll will be paid in April. Employees work 5 days a week and the company pays $1.330 a week in wages. What will be the amount of accrue wages expense at the end of March?
Drew Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Drew accrues salaries expense only at its December 31 year-end. Data relating to salaries earned on December 2021 are as follows:A. Last payroll was paid on December 26, 2021for the 2-week period ended December 26, 2021.B. Overtime pay earned in the 2-week period ended December 26, 2021 was P5,000.C. Remaining work days in 2021 were December 29, 30, 31, on which days there was no overtime.D. The recurring biweekly salaries total P90,000 a. Assuming a five-day work week, D should record a liability at year end for accrued salaries:
Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8- hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Wage Rate 2019 $9 (a) 2020 $10 2020 Vacation Days Used by Each Employee 2019 0 2020 Salaries and Wages Expense 10 Salaries and Wages Payable. Stellar Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Sick Days Used by Each Employee 2020 2019 Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are…
Pronghorn Company began operations on January 2, 2025. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Sick Days Used by Each Employee Vacation Days Used Wage Rate by Each Employee 2025 2026 2025 2026 2025 2026 $6 $7 0 9 5 Pronghorn Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent…
Swifty Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2022, are presented below. Employee Hours Worked Hourly Rate Federal Income Tax Withholdings United Fund Ben Abel 40 $14.00 $59.00 $5.00 Rita Hager 41 16.00 64.00 5.00 Jack Never 44 13.00 60.00 8.00 Sue Perez 46 13.00 62.00 5.00 Abel and Hager are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.6%. 1. Prepare a payroll register for the weekly payroll. No employee has reached the Social Security limit of $132,900 or the FUTA/SUTA limit of $7,000 2. Journalize the payroll on March 15, 2022, and the accrual of employer payroll taxes. 3. Journalize the payment of the payroll on March 16,…
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.)