B 1

On December 1, Destin Corporation borrowed $10,000 on a 120-day, 8% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note.

B 3

Mary Stines regular hourly wage rate is $12, and she receives an hourly rate of $18 for work in excess of 40 hours. During a March pay period, Mary works 47 hours. Marys federal income tax withholding is $70, and she has no voluntary deductions. Compute Mary Stines gross earnings and net pay for the pay period.

B 4

Stiner Company has the following selected accounts after posting adjusting entries:

Accounts Payable $ 45,000

Notes Payable, 3-month 80,000

Accumulated DepreciationEquipment 14,000

Payroll and Benefits Payable 27,000

Notes Payable, 5-year, 8% 30,000

Estimated Warranty Liability 34,000

Payroll Tax Expense 6,000

Interest Payable 3,000

Mortgage Payable 200,000

Sales Tax Payable 16,000

Instructions

(a) Prepare the current liability section of Stiner Company's balance sheet, assuming $25,000 of the mortgage is payable next year. (List liabilities in magnitude order, with largest first.)

(b) Comment on Stiner 's liquidity, assuming total current assets are $450,000.

B 5

Brandy and Johnson decide to organize a partnership. Brandy invests $25,000 cash, and Johnson contributes $5,000 and equipment having a book value of $3,500 and a fair market value of $10,000.

Instructions

Prepare the entry to record each partners investment.

BE 6

The Jill & Frill Co. reports net income of $28,000. Interest allowances are Jill $3,000 and Frill $5,000; partner salary allowances are Jill $18,000 and Frill $10,000 and the remainder is shared equally.

Instructions

Indicate the division of net income to each partner, and prepare the entry to distribute the net income.