Assignment 1Chapter 11

Johann Schroeder borrowed $200,000 from HSBC on a 90-day, 4 percent note. Record the following transactions for Johann, rounding to the nearest dollar (explanations are not required):

ABorrowing the money on May 6.

BPaying the principal and interest at maturity.

Specify the date. For the computation of interest, use a 365-day year. Accounting for a note payable

General Journal

Date

Account Title and Explanation

Debit

Credit

Johann Schroeder borrowed $200,000 from HSBC on a 90-day, 4 percent note. Record the following transactions for Johann, rounding to the nearest dollar (explanations are not required):

ABorrowing the money on May 6.

BPaying the principal and interest at maturity.

Specify the date. For the computation of interest, use a 365-day year. Accounting for a note payable

General Journal

Date

Account Title and Explanation

Debit

Credit

Assignment 2Chapter 9

Swift Media Sign Company sells on account. Recently, Swift reported these figures:

20142013

Net sales $600,060$570,000

Receivables at year end $42,800 $38,200

Collection period for receivables 1. 25 days

Required:

1.Compute Swift Media Sign Company's days' sales in average receivables for 2014.

One day's sale =__________________________________=____________ per day

Day's sales in average receivables =_____________________ =____________ days

2.Suppose Swift's normal credit terms for a sale on account are "2/10, net 30." How well does Swift's collection period compare to the company's credit terms? Is this good or bad for Swift? Explain.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Assignment 3Chapter 11

Patagonia Corporation guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be 3 percent of sales.

Assume that a Patagonia dealer made sales totalling $600,000 during 2014, its first year of operations. The company received cash for 30 percent of the sales and notes receivable for the remainder. Warranty payments totalled $9,000 during 2014.

Required:

1.Record the sales, warranty expense, and warranty payments for Patagonia Corporation.

2.Post to the Estimated Warranty Payable T-account. At the end of 2014, what is the estimated warranty payable balance for Patagonia Corporation?

Req. 1

General Journal

Date

Account Title and Explanation

Debit

Credit

Req. 2Estimated Warranty Payable

Assignment 4Chapter 11

Brad Jackson works for a Bob's Burgers takeout for straight-time earnings of $10.50 per hour, with time and a half for hours in excess of 35 per week. Jackson's payroll deductions include income tax of 25 percent, CPP of 4.95 percent on earnings (account for the $3,500 basic annual exemption), and EI of 1.83 percent on earnings. In addition, he contributes $10 per week to his Registered Retirement Savings Plan (RRSP). Assume Jackson worked 40 hours during the week. He has not yet reached the CPP or EI maximum earning levels.

Required:

1.Compute Jackson's gross pay and net pay for the week.

2.Make a general journal entry to record the restaurant's wage expense for Jackson's work, including his payroll deductions and the employer payroll costs. Round all amounts to the nearest cent. An explanation is not required.

Req. 1 (compute gross pay and net pay)

Req. 2 (employers' payroll entry)

General Journal

Date

Account Title and Explanation

Debit

Credit

Assignment 1Chapter 11

Johann Schroeder borrowed $200,000 from HSBC on a 90-day, 4 percent note. Record the following transactions for Johann, rounding to the nearest dollar (explanations are not required):

ABorrowing the money on May 6.

BPaying the principal and interest at maturity.

Specify the date. For the computation of interest, use a 365-day year. Accounting for a note payable

General Journal

Date

Account Title and Explanation

Debit

Credit

Assignment 2Chapter 9

Swift Media Sign Company sells on account. Recently, Swift reported these figures:

20142013

Net sales $600,060$570,000

Receivables at year end $42,800 $38,200

Collection period for receivables 1. 25 days

Required:

1.Compute Swift Media Sign Company's days' sales in average receivables for 2014.

One day's sale =__________________________________=____________ per day

Day's sales in average receivables =_____________________ =____________ days

2.Suppose Swift's normal credit terms for a sale on account are "2/10, net 30." How well does Swift's collection period compare to the company's credit terms? Is this good or bad for Swift? Explain.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Assignment 3Chapter 11

Patagonia Corporation guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be 3 percent of sales.

Assume that a Patagonia dealer made sales totalling $600,000 during 2014, its first year of operations. The company received cash for 30 percent of the sales and notes receivable for the remainder. Warranty payments totalled $9,000 during 2014.

Required:

1.Record the sales, warranty expense, and warranty payments for Patagonia Corporation.

2.Post to the Estimated Warranty Payable T-account. At the end of 2014, what is the estimated warranty payable balance for Patagonia Corporation?

Req. 1

General Journal

Date

Account Title and Explanation

Debit

Credit

Req. 2Estimated Warranty Payable

Assignment 4Chapter 11

Brad Jackson works for a Bob's Burgers takeout for straight-time earnings of $10.50 per hour, with time and a half for hours in excess of 35 per week. Jackson's payroll deductions include income tax of 25 percent, CPP of 4.95 percent on earnings (account for the $3,500 basic annual exemption), and EI of 1.83 percent on earnings. In addition, he contributes $10 per week to his Registered Retirement Savings Plan (RRSP). Assume Jackson worked 40 hours during the week. He has not yet reached the CPP or EI maximum earning levels.

Required:

1.Compute Jackson's gross pay and net pay for the week.

2.Make a general journal entry to record the restaurant's wage expense for Jackson's work, including his payroll deductions and the employer payroll costs. Round all amounts to the nearest cent. An explanation is not required.

Req. 1 (compute gross pay and net pay)

Req. 2 (employers' payroll entry)

General Journal

Date

Account Title and Explanation

Debit

Credit

1-Johann Schroeder borrowed $200,000 from HSBC on a 90-day, 4 percent note. Record the following transactions for Johann, rounding to the nearest dollar (explanations are not required):

ABorrowing the money on May 6.

BPaying the principal and interest at maturity.

2-Specify the date. For the computation of interest, use a 365-day year. Accounting for a note payable

Swift Media Sign Company sells on account. Recently, Swift reported these figures:

20142013

Net sales $600,060$570,000

Receivables at year end $42,800 $38,200

Collection period for receivables 1. 25 days

Required:

1.Compute Swift Media Sign Company's days' sales in average receivables for 2014.

One day's sale =__________________________________=____________ per day

Day's sales in average receivables =_____________________ =____________ days

2.Suppose Swift's normal credit terms for a sale on account are "2/10, net 30." How well does Swift's collection period compare to the company's credit terms? Is this good or bad for Swift? Explain.

3-Patagonia Corporation guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be 3 percent of sales.

Assume that a Patagonia dealer made sales totalling $600,000 during 2014, its first year of operations. The company received cash for 30 percent of the sales and notes receivable for the remainder. Warranty payments totalled $9,000 during 2014.

Required:

1.Record the sales, warranty expense, and warranty payments for Patagonia Corporation.

2.Post to the Estimated Warranty Payable T-account. At the end of 2014, what is the estimated warranty payable balance for Patagonia Corporation?

4-Brad Jackson works for a Bob's Burgers takeout for straight-time earnings of $10.50 per hour, with time and a half for hours in excess of 35 per week. Jackson's payroll deductions include income tax of 25 percent, CPP of 4.95 percent on earnings (account for the $3,500 basic annual exemption), and EI of 1.83 percent on earnings. In addition, he contributes $10 per week to his Registered Retirement Savings Plan (RRSP). Assume Jackson worked 40 hours during the week. He has not yet reached the CPP or EI maximum earning levels.

Required:

1.Compute Jackson's gross pay and net pay for the week.

2.Make a general journal entry to record the restaurant's wage expense for Jackson's work, including his payroll deductions and the employer payroll costs. Round all amounts to the nearest cent. An explanation is not required.