All requiements needed

750 Financial chapter 13 COMPREHENSIVE PROBLEM > Comprehensive Problem for Chapters F:11, F:12, and F:13 The Turquittec Company is a retail compuny that began operatinns on October 1 , 2024, when it incorporated in the state of North Carclina. The Tasquittec Conpany is authorized to issue 100,000 shares of $1 par valie common sock and 50,000 shares of 5%. 550 par value preferred stock. The company sells a prodact that includes a one-year watranty and tecotds estimated warranty payable exch month. Caitomen ate charged a 6% state sales tax. The company uses a perperual inventory system. There are three employes who are paid a moethy wilury en the last day of the month. Following is the chart of accounts for The Tuscyittec Company. As a new bunines, all beginning balaness are 50 . \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{\begin{tabular}{c} The Tusquittee Company \\ Chart of Accounts \end{tabular}} \\ \hline Cash & Dividends Payable-Commen \\ \hline Merchandise inventory & Notes Payable \\ \hline Land & Mortgages Payable \\ \hline Building & Common Stock-51 Par Value \\ \hline Store Fixtures & Paid-In Capital in Excess of Par-Common \\ \hline Accumulated Depreciation & Paid in Capital from Treasery Stock Transactions \\ \hline Accounts Payable & Metained Earnings \\ \hline Employee income Taxes Payable & Treasury Stodk-Common \\ \hline FICA-OASDI Taxes Payable & Canh Dividends \\ \hline FICA - Medicare Taxes Payable & Sales Revenue \\ \hline Employee Health insurance Payable & Cont of Goods Sold \\ \hline Federal Unemployment Taxes Payable & Solaries Expense \\ \hline State Unemployment Taxes Payable & Payroll Tax Expense \\ \hline Income Tax Payable & Utilities Experate \\ \hline Sales Tax Payable & Depreciation Expense \\ \hline Estimated Warranty Payable & Warranty Expense \\ \hline \multirow[t]{2}{*}{ Interest Payable } & Income Tax Expense \\ \hline & Interest Expense \\ \hline \end{tabular} quatter of 2024 , its fint year of operations: Oct. 1 issued 25,000 shares of \$1 par value common stock for cesh of $10 per share. 1 Issued a $200,000, 10-year, 8% mortgage payable for land with an existing store building. Mortgage payments of $2,425 are due on the first day of each month, beginning November 1. The assets had the following market values: Land, \$40,000; Building, \$160,000. 1 Issued a one-yeat, 10% note payable for $10,000 for store fictures. The principal and interest are due October 1, 2025. 3 Purchased merchandise imventory on account from Top Rate for $125,000, terms n30. 15 Paid $160 for utilities. 31 Recorded cash sales for the month of $185,000 plus sales tax of 6$5. The cost of the goods sold was $110,000 and estimated warranty poyable was 8%. 31 Recorded October payroll and paid employees. 31 Accrued employer payroll taxes for October. Nov, 1 Paid the first mortgage payment. 3 Paid Top Rate for the merchandise inventory purchased on Octeber 3. 10 Purchased merchandise inventory on account from Top Rate for $150,000, terms n/30. 12 Purchased 500 shares of treasury stock for $15 per share 15 Paid all liabilities associated with the October 31 payroll. 15 Remitted (paid) sales tax from October sales to the state of North Carolina. 16 Paid $6,000 to satisfy warranty claims. 17 Dedlared cash dividends of \$1 per outstanding thare of common stock. 18 Paid $245 for utilities. 27 Paid the cash dividends. 30 Recordied cash sales for the month of $140,000 plus sales tar of 65 . The cost of the goods sold was $84,000 and estimated warranty payable was 8%. 30 Recorded November payroll and paid employees. 30. Accrued employer payroll taxes for November. Dec. 1 Paid the second mortgage payment. 10 Paid Top Rate for the merchandise inventory purchased on November 10. 12 Paid $7,500 to satisfy warranty claims. 15 Sold 300 shares of treasury stock for 520 per share. 15 Paid all liabilities awociated with the November 30 payroll. 15. Remitted (paid) sales tax from November sales to the state of North Carolina. 18 Paid $220 for utilities. 19 Purchased merchandise inventory on account from Top Rate for $39,000. terms n/30. 31 Recorded cash sales for the month of $210,000 plus sales tax of 6$; The cost of the goods sold was $126,000 and estimated warranty payable was 8%. 31 Recorded December payroll and paid employees. 31 Accrued employer payroll taxes for December. Requirements 1. In preparation for reconding the transactions, prepare a. An amortiration schedule for the first thece months of the mortyage payale issuod on October 1 . Round interest calculations to the neafest dollar. b. Paynoll regasters for Oetober, November, and December. All employees worked October 1 through December 31 and are subject to the following. FICA taxes OASDI: 6.2% on first $132,900 earned; Medicare 1.45% up to $200,000,235% on carnings above $200,000. Additional paroll infortnation includes: c. Calculations for employer payroll taxes liabilities for Octoher, Nowember, and December OASDL: 6,2% on first $132,900 camct, Medicare: 1.45%, SUTA: 5.4% on first $7,000 earned; FUTA: 0.6% on fiest 57,000 earned. 2. Record the transactions in the gericral fournal. Omit explanations. 3. Post to the general ledger. 4. Record adjusting entries for the three-month period ended December 31. 2024: a. Depreciation on the Boilding, straight-line, 40 years, no residual value. b. Store Frxtures, struight-line, 20 years, no sesidual value. c. Accrood interest expense on the note payable for the store fixtures. d. Accrued interest expense on the mortypage payahle. e. Accrued income tax copense of $3,000. 5. Post adfusting critnes and prepate an adfusted trial balance: 6. Prepare a multi-step income statement and statement of retained earnings for the quarter ended December 31, 2024. Prepare a dassificd balance sheet as of Decemler 31, 2024. Assume that $1,3,840 of the mortgage payable is due within the next ycar. 7. Evaluate the company's success for the first quarter of operatioes by caleulating the following ratios. The marlact price of the common stock is $25 on December 31 , 2024. Roxand to tuo decimal places. a. Times interest camed b. Debt to equity c. Famings per shane d. Price/camings natio c. Raye of retura on common stock. 8. The Tasquittee Company wants to expand and is consideriny, options for rais: ing additsonal cash. The eompary estimates net income before the expanuen of $250,000 in 20125 and that the expanson will provide additional operating income of 575,000 in 2025. The company intends to sell the shares of treasury stock, so use issued shares for the analy as nther than carrens shares outsending, Compare these options assuming a 21% income tax rate: Plan 1: Issae 10,000 adifitional sharez of common stock for $20 per share Man 2. Jisue $200,000 in 20-ycar, 12% bonds payable. Which option will contribote more net income in 2025 ? Which optoon provider the highest HiPs