Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem P11.25APGA
Journalizing and posting liabilities
Learning Objective 1, 2
1d. Rent Revenue $3,000
The general ledger of Seal-N-Ship at June, 2018, the end of the company’s fiscal year, included the following account balances before payroll and
| Accounts Payable | $ 114,000 |
| Interest Payable | 0 |
| Salaries Payable | 0 |
| Employee Income Taxes Payable | 0 |
| FICA—OASDI Taxes Payable | 0 |
| FICA—Medicare Taxes Payable | 0 |
| Federal |
0 |
| State Unemployment Taxes Payable | 0 |
| Unearned Rent Revenue | 7,200 |
| Long-term Notes Payable | 210,000 |
The additional data needed to develop the payroll and adjusting entries at June 30 are as follows:
a. The long-term debt is payable m annual installments of $42,000, with the next installment due on July 31. On that date, Seal-N-Ship will also pay one year’s interest at 9%. Interest was paid on July 31 of the preceding year. Make the adjusting entry to accrue interest expense at year-end.
b. Gross unpaid salaries for the last payroll of the fiscal year were $4,700. Assume that employee income taxes withheld are $910 and that all earnings are subject to OASDI.
c. Record the associated employer taxes payable for the last payroll of the fiscal year, $4,700. Assume that the earnings are not subject to unemployment compensation taxes
d. On February 1, the company collected one year’s rent of $7,200 in advance.
Requirements
1. Using T-accounts, open the listed accounts and inset the unadjusted June 30 balances.
2. Journalize and post the June30 payroll and adjusting entries to the accounts that you opened. Identify each adjusting entry by letter. Round to the nearest dollar.
3. Prepare the current liabilities section of the
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year-end.
3. Journalize the company's payment of the note plus interest on December 31, 2018.
S11-5 Determining current portion of long-term note payable
Learning Objective 1
On January 1, Irving Company purchased equipment of $280,000 with a long-term note
payable. The debt is payable in annual installments of $56,000 due on December 31 of
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Learning Obiective 2.
C11
Journalizing And Posting Payroll Entries
Cascade Company has four employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31.
The accounts kept by Cascade include the following:
AccountNumber
Title
Balance onJune 1
101
Cash
$74,200
211
Employee Federal Income Tax Payable
3,562
212
Social Security Tax Payable
5,055
213
Medicare Tax Payable
1,228
218
Savings Bond Deductions Payable
1,300
221
FUTA Tax Payable
556
222
SUTA Tax Payable
3,753
511
Wages and Salaries Expense
0
530
Payroll Taxes Expense
0
The following transactions relating to payrolls and payroll taxes occurred during June and July:
June 15
Paid $9,845 covering the following May taxes:
Social Security tax
$5,055
Medicare tax
1,228
Employee federal income tax withheld
3,562
Total
$9,845
30
June payroll:
Total wages and salaries expense
$46,000
Less amounts withheld:
Social Security tax…
ABC company borrows $80000 on July 1 from the bank by signing $80000, 10% one Year Note Payable.
Prepare the journal entry to record the proceed
Prepare journal entry to record accrual interest at Dec 31
Chapter 11 Solutions
Horngren's Accounting (12th Edition)
Ch. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 2QCCh. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Prob. 8QCCh. 11 - Prob. 9QCCh. 11 - McDaniel and Associates reported the following...
Ch. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - What do short-term notes payable represent?Ch. 11 - 6. Coltrane Company has a $5,000 note payable that...Ch. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. S11.1SECh. 11 - Prob. S11.2SECh. 11 - Prob. S11.3SECh. 11 - Prob. S11.4SECh. 11 - Prob. S11.5SECh. 11 - Prob. S11.6SECh. 11 - Prob. S11.7SECh. 11 - Prob. S11.8SECh. 11 - Prob. S11.9SECh. 11 - Prob. S11.10SECh. 11 - Prob. S11.11SECh. 11 - Prob. S11.12SECh. 11 - Prob. S11.13SECh. 11 - Prob. E11.14ECh. 11 - Prob. E11.15ECh. 11 - Recording and reporting current liabilities...Ch. 11 - Prob. E11.17ECh. 11 - Prob. E11.18ECh. 11 - Prob. E11.19ECh. 11 - Recording employee and employer payroll taxes...Ch. 11 - Accounting for warranty expense and warranty...Ch. 11 - Prob. E11.22ECh. 11 - Prob. E11.23ECh. 11 - Prob. E11.24ECh. 11 - Journalizing and posting liabilities Learning...Ch. 11 - Prob. P11.26APGACh. 11 - Prob. P11.27APGACh. 11 - Prob. P11.28APGACh. 11 - Prob. P11.29APGACh. 11 - Prob. P11.30BPGBCh. 11 - Prob. P11.31BPGBCh. 11 - Prob. P11.32BPGBCh. 11 - Prob. P11.33BPGBCh. 11 - Prob. P11.34BPGBCh. 11 - Prob. P11.35CTCh. 11 - Prob. P11.36CPCh. 11 - Before you begin this assignment, review Tying it...Ch. 11 - Prob. 11.1DCCh. 11 - Prob. 11.2DCCh. 11 - Ethical Issue 11-1 Many small businesses have to...Ch. 11 - Prob. 11.1FSC
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