Calibri (Body) A A" 11 2 Wrap Text v General Paste Merge & Center v M18 B. D. H. 1 Problem C Ruiz Company sells merchandilse in a state that has a 5 per cent sales tax. On 2010 January 2, Rulz sold goods with a sales price of $ 80,000 on credit. Sales taxes collected are recorded in a separate account. Assume that sales for the entire month were $ 900,000. On 2010 January 31, the company remitted the 2 sales taxes collected to the state taxing agency. -4 Prepare the general journal entries to record the January 2 sales revenue. Also prepare the entry to show the remittance of the taxes on January 31. Now assume that the merchandise sold on January 2 also is subject to federal excise taxes of 12 per cent. The federal excise taxes collected are remitted 5 to the proper agency on January 31. Show the entries on January 2 and January 31. GENERAL POST Account/Description REF. Date Debit Credit 14 4. 25 26 27 Alternate problem D Quick Wheels, Inc., sells racing bicydles and warrants all parts for one year. The average price per bicydle is $ 560, and the company sold 4,000 in 2009. The company expects 20 per cent of the bicycles to develop defective parts within one year of sale. The estimated average cost of warranty repairs per defective blcyde is $ 40. By the end of the year, 500 blcydes sold that year had been returned and repaired under warranty. On 2010 January 2, a customer returned a 28 blcyde purchased in 2009 for repairs under warranty. The repairs were made on January 3. The cost of the repairs induded parts, $ 25, and labor, $ 15. 29 Calculate the amount of the estimated product warranty payable. Prepare the entry to record the estimated product warranty payable on 2009 December 31 Prepare the entry to record the repairs made on 2010 January 3. 30 31 32 33 34 35 JOURNAL 36 POST Date Account/Description 37 Debit REF. Credit 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 55 56 57 58 59 60 61 Jay, an employee is pald $20 an hour and time-and-a-half for overtime hours over 40. Compute Jay's 62 pay for a 52 hour workweek. Assume the income tax withholding is 10% of pay. Compute the take home 63 pay assuming 6.2% for soclal security and 1.45% for Medicare. Also assume that FUTA is 0.85 and SUTA 64 is 5.4%. Previous to this paycheck, Jay has earned $6,500. the ceilling for FICA Is $117,500 and $7,000 65 for unemplayment taxes. 66 67 Journalize the paycheck and the employers responsibility for this payroll. 68 JOURNAL 69 POST 70 Account/Description Debit Credit Date REF. 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Book C. D. H. 90 Unit 13 91 Exercise A Kelly Green and Rose Vlolet form a partnership. Kelly contributes $130,000 cash and Rose contributes equipment worth $20,000 and a bullding worth $150,000. The building has a mortgage of $70,000 that will now be pald by the partnership. Write the required journal entries for each 92 partner's imvestment. 93 94 JOURNAL 95 POST 96 Date Account/Description REF. Debit Credit 97 98 99 100 101 102 103 104 105 106 Exercise B 107 Partner Z withdraws cash of $25,000 and Partner Y withdraws $18,000. Write the journal entries required to record each partner's withdrawal. 108 109 JOURNAL 110 POST 111 112 113 Date Account/Description REF. Debit Credit 114 115 116 117 118 119 120 121 122
