ACCOUNTING PRINCIPLES 122 5/16 >C<
17th Edition
ISBN: 9781323461471
Author: Horngren
Publisher: PEARSON C
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Chapter 11, Problem P11.30BPGB
Journalizing and posting liabilities
The general ledger of U-R-Shipping at June 30, 2016, the end of the company's fiscal year, includes the following account balances before payroll and
Accounts Payable $ 115,000
Interest Payable 0
Salaries Payable 0
Employee Income Taxes Payable 0
FICA-OASDI Taxes Payable 0
FICA-Medicare Taxes Payable 0
Federal
State Unemployment Taxes Payable 0
Unearned Rent Revenue 6,300
Long-Term Notes Payable 300,000
The additional data needed to develop the payroll and adjusting entries at June 30 are as follows:
a. The long-term debt is payable in annual installments of $60,000, with the next installment due on July 31. On that date, U-R-Shipping will also pay one year's interest at 8%. 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 $4,100. Assume that employee income taxes withheld are $820 and that all earnings are subject to OASDI.
c. Record the associated employer taxes payable for the last payroll of the fiscal year, $4,100. Assume that the earnings are not subject to unemployment.
d. On February 1, the company collected one year's rent of $6,300 in advance.
Requirements
- Using T-accounts, open the listed accounts and insert the unadjusted June 30 balances.
- Journalize and post the June 30 payroll and adjusting entries to the accounts that you opened. Identify each adjusting entry by letter.
- Prepare the current liabilities section of the
balance sheet at June 30, 2016.
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Instructions
According to a summary of the payroll of Mountain Streaming Co., $770,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $42,000 was subject to state and
federal unemployment taxes.
Required:
A. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
B. Journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
Op.30.
1) Remaining VAT accounts of our company as of the end of January 2021 are as follows.
191 Deductible VAT = 10.000 TL Debt Remaining
391 Calculated VAT = 8.000 TL Credit Remainder
Record the journal (daily book) regarding VAT offset.
Chapter 11 Solutions
ACCOUNTING PRINCIPLES 122 5/16 >C<
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