Chapter 13, Problem 13.1COP

1.

a.

To determine

To Prepare: An amortization schedule for the first 3 months of the mortgage payable issued on October 1.

b.

To determine

To Prepare: The payroll registers for the month of October, November, and December.

c.

To determine

To Calculate: The payroll taxes liabilities for the employer for the month of October, November, and December.

2.

To determine

To Record: The transaction in the general journal.

3. and 5.

To determine

T Accounts: T- accounts are prepared for all the business transactions. First, journal entries are passed and then transferred to the respective ledger accounts where they are recorded, and summarized in either side of the ‘T’ format. It is divided into two parts by a vertical line, that is, the left side and the right side. The left side of the T-account is known as the debit side, and the right side of the T-account is known as the credit side. The account name appears on the top of the T-account.

To Post: The above journal entries and adjusting entries to T-accounts of Incorporation T.

4.

To determine

To Record: The adjusting entries for the three month period ended December 31, 2018.

5.

To determine

Trial balance: This is a statement prepared to show all the year-end account balances of a business. The balances are shown in separate columns as debit and credit. Trial balance is made to check whether books of accounts of the business are arithmetically accurate.

Prepare trial balance for T Company as on December 31, 2018.

6.

To determine

To Prepare: The income statement, retained earnings statement, and balance sheet of Company T for the quarter ended December 31, 2018.

7.

To determine

To Compute: The times interest earned ratio, debt to equity ratio, earnings per share ratio, price/earnings ratio, and rate of return on common stock.

8.

To determine

To Compute: The net income and earnings per share of Company T for both the plans.