9-5, 9-6, 9-7
419 Chapter 9 Accounting for Current Liabilities Sylvestor Systems borrows sijo.000 cash on May 15, 2015, by signing a Exercise 9-3 60-day, 12% note. 1. On what date does this note mature? Accounting for note payable P ppose the face value of the note equals S110,000, the principal of the loan. Prepare the journal en Check interest tries to record (a) issuance of the note and (b) payment of the note at maturity, Keesha Co. borows s 200.000 cash on ember 1. 2015, by signing a 90-day, 9% note with a face value Exercise 9-4 Interest-bearing notes payable with year-end 1. On what date does this noie mature? P1 2. How much interest expense results from this note in 2015? (Assume a 360-day year) Check 2) S3.000 How much interest expense results from this note in 2016? (Assume a 360-day year.) 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2015. and payment of the noie at maturity. (Assume no reversing entries are made.) employee. FICA Social Security taxes are 6.2% of the first SI17.000 paid to its Exercise 9-5 BMX Company has one employee, and FICA Medicare taxes are l 45% of gross pay. For BMX, its FUTA taxes are 0,6% and computing payroll taxe SUTA taxes are 2,9% of the first $7,000 paid to its employee, Compute BMX's amounts for each of these four taxes as applied to the employee gross earnings for September under each of three separate situa (b) and (c). (Round to cents.) Gross Pay through August Gross Pay for September Check FUTA $3.60 800 6400 SUTA, $1740 Using the data in situation a of Exercise 9.5. prepare the employer's September 30 journal entries to re- Exercise 9-6 cord salary expense and its related payroll liabilities for this employee. The employee's federal income Payroll related journa taxes withheld by the employer are S80 for this pay period. (Round amounts to entries P2 Using the data in situation a of Exercise 9-5, prepare the employer's September 30 journal entries to re- Exercise 9.7 cord the employer's payroll taxes expense and its related liabilities. (Round amounts to cents.) Payroll-related journ entries P3 The following monthly data are taken from Ramirez Company at July 31: sales salaries, $200.000; office Exercise 9-8 salaries. $160,000, federal income taxes withheld $90,000; state income taxes withheld S20.00: Social Recording payroll s4,000; union dues deducted. si.000. and salaries subject to unemployment life insurance premiums, taxes $50,000. The employee pays 40% of medical and life insurance premiums Prepare journal entries to record: accrued payroll, including employee deductions, for July 2 cash payment of the net payroll (salaries payable) for July: 3 accrued employer payroll taxes, and other related for assume that FICA taxes are identical to those on employees and that SUTA expenses, employment taxes are 5.4% and FUTA taxes are 0.6%; and (4) cash payment liabilities related to the July payroll. Mester Company has 10 employees. FICA Social Security taxes are 62% of the first si17.000 paid to each Exercise 9-9
