apters 11, 12, 13 p. 726 1 of 1 (1 complete) Requirements a 1. In preparation for recording the transactions, prepare: An amortization schedule for the first 3 months of the mortgage payable issued on October 1. Round interest calculations to the nearest dollar. b. Payroll registers for October, November, and December. All employees worked October 1 through December 31 and are subject to the following FICA taxes: OASDI: 6.2% on first $118,500 earned: Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Additional payroll information includes: Monthly Federal Health Employee Salary Income Tax Insurance Keirsten Jordan $ 5.800 S 1,740 $ 200 Mabel Schaefer 4.000 980 200 Shannon Mitchell 3,300 405 200 G. Calculations for employer payroll taxes liabilities for October, November, and December OASDI: 6.2% on first $118.500 earned: Medicare: 1.45%: SUTA: 5.4% on first $7.000 earned, FUTA: 0.8% on first $7.000 earned 2. Record the transactions in the general journal. Omit explanations 3. Post to the general ledger 4. Record adjusting entries for the three month period ended December 31, 2018 Depreciation on the Building, straight-line. 40 years, no residual value b. Depreciation on Store Fixtures, straight-line 20 years no residual value. c Accrued interest expense on the note payable for the store foctures. d. Accrued interest expense on the mortgage payable e Accrued income tax expense of $31.000, 6. Post adjusting entries and prepare an adjusted trial balance 6. Prepare a multi-step income statement and statement of retained earnings for the quarter ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume that $15.970 of the mortgage payable is due within the next year 7. Exause the company success for the first quarter of operations by calculating the following ratos. The market price of the common stock 530 on December 31, 2018. Round to two decima places a. Print Done 1 of 1 (1 complete) Requirements e. Shannon Mitchell 3.300 495 200 c. Calculations for employer payroll taxes liabilities for October, November, and December. OASDI: 6.2% on first $118.500 earned, Medicare: 1.45%; SUTA: 5.4% on first $7.000 earned: FUTA: 0.6% on first $7,000 eamed. 2. Record the transactions in the general journal. Omit explanations. 3. Post to the general ledger. 4. Record adjusting entries for the three month period ended December 31, 2018 a Depreciation on the Building, straight-line, 40 years, no residual value. b. Depreciation on Store Fixtures, straight-line. 20 years, no residual value. Accrued interest expense on the note payable for the store forures. d. Accrued interest expense on the mortgage payable. Accrued income tax expense of $31,000, 5. Post adjusting entries and prepare an adjusted trial balance 6. Prepare a multi-step income statement and statement of retained earnings for the quarter ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume that $15.970 of the mortgage payable is due within the next year. 7. Evaluate the company's success for the first quarter of operations by calculating the following ratios. The market price of the common stock is 530 on December 31, 2018. Round to two decimal places a. Times interest earned b Debt to equity c. Earings per share d. Pricelearnings ratio e. Rate of return on common stock 8. The Kinston Company wants to expand and is considering options for raising additional cash the company estimates net income before the expansion of $280,000 in 2019 and that the expansion will provide additional operating income of $80.000 in 2010. The company intends to sell the shares of treasury stock, so use issued shares for the analysis rather than current shares outstanding Compare these options, assuming a 3096 income tax rate: Pian 1: Issue 20.000 additional shares of common stock for $30 per share Plan 2: Issue 5140,000 in 15-year. 14% bonds payable Which option will contbute more net income in 2019? Which option provides the nighest EPS? Print Done PIETAT 6340841&questionid=1&flushed=true&cid=61949148 centerwin uyes Chapters 11, 12, 13 p. 726 1 of 1 (1 complete) Liner ch YA Data Table s du Sin and 304 200 201 The Tusquittee Company Chart of Accounts Cash Dividends Payable-Common Merchandise Inventory Notes Payable Land Mortgages Payable Building Common Stock-$1 Par Value Store Fixtures Paid-in Capital in Excess of ParCommon Accumulated Depreciation Pald-in Capital from Treasury Stock Transactions Accounts Payable Retained Earings Employee Income Taxes Payable Treasury Stock-Common FICA-OASDI Tares Payable Cash Dividends FICA-Medicare Taxes Payable Sales Revenue Employee Health Insurance Payable Cost of Goods Sold Federal Unemployment Tes Payable Salaries Expense State Unemployment Taxes Payable Payroll Tax Expense Income Tax Payable Utilities Expense Sales Tax Payable Depreciation Expense Estimated Warranty Payable Warranty Expense Interest Payable Income Tax Expense Interest Expense ho Fic 2 Earn Print Done Clear All pters 11, 12, 13 p. 726 1 of 1 (1 complete) 1 More Info Oct 1 Issued 32,000 shares of $1 par value common stock for cash of $15 per share, Issued a $300,000. 10-year, 10% mortgage payable for land with an existing store building. Mortgage payments of $3,750 are due on the first day of each month, beginning November 1. The assets had the following market values: Land. $40,000: Building, Oct. 1 $260.000 Issued a one-year, 8% note payable for $12,000 for store fixtures. The principal and Oct 1 interest are due October 1, 2019. Oct. 3 Purchased merchandise inventory on account from First Rate for $132,000, terms n/30. Oct 15 Paid $120 for utilities Recorded cash sales for the month of S170,000 plus sales tax of 6%. The cost of the Oct 31 goods sold was $102,000 and estimated warranty payable was 6%, Oct. 31 Recorded October payroll and paid employees. Oct. 31 Accrued employer payroll taxes for October Nov. 1 Paid the first mortgage payment. Nov. 3 Paid First Rate for the merchandise Inventory purchased on October 3. Nov. 10 Purchased merchandise Inventory on account from First Rate for $100,000, terms 1/30. Nov. 12 Purchased 1.000 shares of treasury stock for $14 per share. Nov. 15 Paid all liabilities associated with the October 31 payroll Nov. 15 Remitted (paid) sales tax from October sales to the state of North Carolina Nov. 16 Paid $3,500 to satisfy warranty claims Nov 17 Declared cash dividends of $1 per outstanding share of common stock Nov. 18 Pald $320 for utilities Nov. 27 Paid the cash dividends Recorded cash sales for the month of $120.000 plus sales tax of 89 The cost of the Nov. 30 goods sold was $72.000 and estimated warranty payable was 66 Print Done WG hapters 11, 12, 13 p. 726 1 of 1 (1 complete) co More Info X y ule ng ce 30 98 07 30. Nov. 10 Purchased merchandise inventory on account from First Rate for $100.000, Terms 730 Nov. 12 Purchased 1,000 shares of treasury stock for $14 per share. Nov. 15 Paid all liabilities associated with the October 31 payroll. Nov. 15 Remitted (paid) sales tax from October sales to the state of North Carolina, Nov. 16 Paid $3,500 to satisfy warranty claims Nov. 17 Declared cash dividends of 31 per outstanding share of common stock. Nov. 18 Paid $320 for utilities Nov. 27 Paid the cash dividends. Recorded cash sales for the month of $120,000 plus sales tax of 8%. The cost of the Nov. 30 goods sold was $72.000 and estimated warranty payable was 8% Nov. 30 Recorded November payroll and paid employees. Nov. 30 Accrued employer payroll taxes for November Dec. 1 Paid the second mortgage payment. Dec. 10 Paid First Rate for the merchandise inventory purchased on November 10. Dec. 12 Paid $7.300 to satisfy warranty claims. Dec. 15 Solid 250 shares of treasury stock for $20 per share Dec. 15. Pad al liabilities associated with the November 30 payroll. Dec. 15 Remitted (paidsales tax from November sales to the state of North Carolina Dec. 18 Paid 5200 fot utilities Dec. 19 Purchased merchandise inventory on account from First Rate for $75,000. terms 130 Recorded cash sales for the month of S100.000 plus sales tax of 89. The con the Dec. 31 19001 sold was 500.000 and estimated warranty payable was 9 Deb. 31 Recorded December payroll and paid employees Dec 31 ACO employer payt es for December ma 5 Print Done TI