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Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2018 fiscal year, the company had notes payable of $12.7 million due on February 8, 2019. Rushing sold 2.5 million shares of its $0.25 par, common stock on February 3, 2019, for $8.5 million. The proceeds from that sale along with $4.2 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Through his attorney, one of Rushing's construction workers notified management on January 5, 2019, that he planned to sue the company for $1 million related to a work-site injury on December 20, 2018. As of December 31, 2018, management had been unaware of the injury, but reached an agreement on February 23, 2019, to settle the matter by paying the employee's medical bills of $83,000. Rushing's financial statements were finalized on March 3, 2019. Required: 1. What amount(s) if any, related to the situations described should Rushing report among current liabilities in its balance sheet at December 31, 2018? 2. What amount(s) if any, related to the situations described should Rushing report among long-term liabilities in its balance sheet at December 31, 2018? 3. What amounts) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2018 if the settlement agreement had occurred on March 15, 2019, instead? 4. What amount(s) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2018 if the work-site injury had occurred on January 3, 2019, instead? Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their wages or salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows: Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums Life insurance premiums Federal income taxes to be withheld Local income taxes to be withheld Payroll taxes: Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security tax rate Medicare tax rate $2,300,000 87,000 45,000 9,300 430,000 56,000 0.60% 5.40% 6. 20% 1.45% Required: Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the biweekly pay period. Assume that all employees' cumulative wages do not exceed the relevant wage bases for Social Security, FUTA or SUTA. Salaries are not yet paid. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2018 fiscal year, the company had notes payable of $12.7 million due on February 8, 2019. Rushing sold 2.5 million shares of its $0.25 par, common stock on February 3, 2019, for $8.5 million. The proceeds from that sale along with $4.2 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Through his attorney, one of Rushing's construction workers notified management on January 5, 2019, that he planned to sue the company for $1 million related to a work-site injury on December 20, 2018. As of December 31, 2018, management had been unaware of the injury, but reached an agreement on February 23, 2019, to settle the matter by paying the employee's medical bills of $83,000. Rushing's financial statements were finalized on March 3, 2019. Required: 1. What amount(s) if any, related to the situations described should Rushing report among current liabilities in its balance sheet at December 31, 2018? 2. What amount(s) if any, related to the situations described should Rushing report among long-term liabilities in its balance sheet at December 31, 2018? 3. What amounts) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2018 if the settlement agreement had occurred on March 15, 2019, instead? 4. What amount(s) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2018 if the work-site injury had occurred on January 3, 2019, instead? Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their wages or salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows: Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums Life insurance premiums Federal income taxes to be withheld Local income taxes to be withheld Payroll taxes: Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security tax rate Medicare tax rate $2,300,000 87,000 45,000 9,300 430,000 56,000 0.60% 5.40% 6. 20% 1.45% Required: Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the biweekly pay period. Assume that all employees' cumulative wages do not exceed the relevant wage bases for Social Security, FUTA or SUTA. Salaries are not yet paid. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
