4. What is the net effect of the above errors in the 2021 net income? (Ifunderstated, put a negative (-) sign before the numerical value)BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception ofits business three years ago. The accruals and prepayments at the end of 2021 are as follows:P 25,000Unused office suppliesAccrued utilities52,000Rent revenue collected in advance87,500Interest receivable65,500Accrued wages49,100Prepaid insurance60,000Your answer

The income statement represents the net income or net loss that is calculated by deducting the…

Answered: Unused office supplies Accrued…

Unused office supplies Accrued utilities Rent revenue collected in advance Interest receivable Accrued wages Prepaid insurance P 25,000 52,000 87,500 65,500 49,100 60,000

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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156 Principles of Cost Accounting Journal entries for payroll A partial summary of the payroll data for Burrington Manufactur- ing Company for each week of June is as follows: ЕЗ-5 LO2 LO3 June 7 June 14 June 21 June 28 Gross earnings . $ 36,500 $ 34,200 $ 37,300 $ 38,400 Deductions: FICA tax, 8% $? $? $? $? Tax-sheltered annuity. 1,825 1,780 1,855 1,870 Income tax 4,215 4,120 4,320 4,410 Health insurance 600 600 600 600 Total deductions $? $? $? $? Net earnings $? $? $? $? a. Compute the missing amounts in the summary, assuming that no employees have reached the $100,000 FICA maximum. b. For each payroll period, prepare journal entries to (1) record the payroll and (2) record the payments to employees.
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Summary Payroll Data In the following summary of data for a payroll period, some amounts have been intentionally omitted: Earnings: 1. At regular rate ? 2. At overtime rate $70,400 3. Total earnings ? Deductions: 4. Social security tax 28,200 5. Medicare tax 7,050 6. Income tax withheld 119,700 7. Medical insurance 16,200 8. Union dues ? 9. Total deductions 174,000 10. Net amount paid 296,000 Accounts debited: 11. Factory Wages 249,100 12. Sales Salaries ? 13. Office Salaries 94,000
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