Accounting Principles, Volume 2: Chapters 13 - 26
Accounting Principles, Volume 2: Chapters 13 - 26
12th Edition
ISBN: 9781118978764
Author: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
Publisher: WILEY
Question
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Chapter 11, Problem 11.5AP

(a)

To determine

Journal Entries: Entries to record the financial transactions during each accounting period are called journal entries. Income, liabilities and the giver are credited if the balance is increased and debited if the balance is reduced Expenses, assets and the receiver are debited if the balance is increased and credited if the balance is reduced in a journal entry.

Adjusting Journal Entries: Companies need to record the journal entries at the end of accounting period to apply the matching and revenue recognition principles. These journal entries are adjusting entries.

W-2 Statement: A mandatory statement to be prepared and presented to each employee within one month after the end of financial year by the employer is called W-2 statement or W-2 form. It includes all the details about the employee’s salary or wages and the deductions.

Federal Insurance Contributions Act (FICA) Tax:  It is a tax applicable on employees’ earnings as a certain percentage. Employers are also supposed to contribute their share and deposit the combined amount to the federal body.

Federal Unemployment Tax Act (FUTA): This is applicable on employers only. It’s a feature of federal social security program. The employees who lost their employment due to any reason other than their own fault are benefitted from this program.

State Unemployment Tax Act (SUTA): It is same as federal unemployment tax act, only difference is that it is a program by states. The employees who lost their employment due to any reason other than their own fault are benefitted from this program.

Federal Income Tax: The tax on the total earnings of employee is deducted by employer and deposited to federal authority. Employer need not to contribute in this tax so it is not included in payroll tax expense.

State Income Tax: The tax on the total earnings of employee is deducted by employer and deposited to state authority. Employer need not to contribute in this tax so it is not included in payroll tax expense.

To prepare: The journal entry at December 31 for full year’s payroll.

(b).

To determine

To prepare: The adjusting journal entry at December 31 for employer’s payroll taxes.

(c)

To determine

To complete: The W-2 wage and tax statement for two employees of Company D.

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Chapter 19 Homework 15 0.87 points eBook Saved Exercise 19-20 (Algo) Contribution margin ratio by sales territory LO A1 Help Save & Exit Submit Check my work Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 550 bikes in each territory. Per unit Sales price Variable cost of goods sold West Coast $ 1,500 East Coast $ 1,440 830 70 830 Variable selling and administrative expenses 160 Ask a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Print Complete this question by entering your answers in the tabs below. References Required A Required B Compute contribution margin (in dollars) for each sales territory. Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin West Coast East Coast…
Chapter 19 Homework 15 0.87 points eBook Saved Exercise 19-20 (Algo) Contribution margin ratio by sales territory LO A1 Help Save & Exit Submit Check my work Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 550 bikes in each territory. Per unit Sales price Variable cost of goods sold West Coast $ 1,500 East Coast $ 1,440 830 70 830 Variable selling and administrative expenses 160 Ask a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Print Complete this question by entering your answers in the tabs below. References Required A Required B Compute contribution margin (in dollars) for each sales territory. Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin West Coast East Coast…
Determine the gross margin of this financial accounting question

Chapter 11 Solutions

Accounting Principles, Volume 2: Chapters 13 - 26

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