Copperfield and Company You've just started your first accounting job, as the accounts payable and payroll chark for Copperfield and Company, a provider of delicate wine glasses to restaurants. Your predecessor of the job suddenly, and was not able to complete all the tasks before leaving you need to get up to speed and complete the unfinished as soon as posible Your tasks on your first day are the following 1. Review the Payroll Journal entries made by your predecessor 2. Compute the relevant amounts for the company's short-term noto payable and determine whether your predecessor's journal etter we correct. 3. Confirm the journal entry for this year's payment on an installment note 4. Make a recommendation as to whether the company should jumalize any warranty expense for the month You decide to get started the sooner the better Chart of Accounts CHART OF ACCOUNTS Copperfield and Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 112 Accounts Receivable 610 Interest Revenue 113 Interest Receivable 114 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 117 Supplies 118 Prepaid Insurance 520 Sales Salaries Expense 521 Factory Wages Expense 522 Officers Salaries Expense 120 Land 523 Delivery Expense 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment 524 Depreciation Expense-Building 526 Repairs Expense 529 Selling Expenses Copperfield and Company Payroll Short-Term Note Payable Chart of Accounts LIABILITIES 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 536 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 210 Accounts Payable 211 Salaries Payable 213 Interest Payable 215 Notes Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 220 Retirement Contributions Payable 221 Charitable Contributions Payable 222 Medical Insurance Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 228 Product Warranty Payable 540 Miscellaneous Expense 710 Interest Expense 536 Pension Expense hart of Accounts 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 219 Employees State Income Tax Payable 220 Retirement Contributions Payable 710 Interest Expense 221 Charitable Contributions Payable 222 Medical Insurance Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 228 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Payroll Shaded cells have feedback X The following into Journal entries for Oct. 15 were made by your predecessor For EICA, assume that the social security rate is 60% and the Medicare rate is 15%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees Review the journal entries, then answer the questions that follow PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTI DET CREDIT ASSETS LABILITIES EQUITY . 108.000.00 38.800,00 72.000.00 151,200.00 Oct 15 Sales Sataries Expense Officers Salaries Expense Office Salaries Expense Factory Wages Expense Social Security Tax Payable Medicare Tax Payable Emoloyees Federal Income Tax Payable Medical Insurance Payable 43.200.00 10.000.00 119.600.00 79.200.00 Payroll Shaded cells have feedback 19,200.00 108,000.00 + 10 349,200.00 + 11 55.271.00 Medical Insurance Payable Retirement Contributions Payable Salaries Payable 15 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 15 Pension Expense 43,200.00 10,800.00 11 1 5 164.00 15 1.107.00 1 57.600.00 57.600.00 . Payroll Shaded cells have feedback X in order to confirm the previous payroll can you save been asked to supply clowing amounts based on your review of the payments These amounts will be checked against the company records and investigated further if necessary 1. Determine the payroll amount subject to todetal and state unemployment taxes in this payroll 5 Point 0/1 2 What is the total payroll for Copperfield and Company shown in these journal entries? S Points 011 3. What is Copperfield and Company's share of FICA taxes in this payroll? Is Points 0/1 4. How much has Copperfield and Company contributed to employee 401k plans in this payroll? Pr Copperfield and Company Chart of Accounts Payroll Short-Term Note Payable Short-Term Note Payable Shaded calls have feedback Copperfield and Company issued a 90-day, 500% note for $190,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity. PAGE 3 JOURNAL ACCOUNTING EQUATION DUTE DESCRIPTION POST. RER DELIT CRITET ASSETS LIABILITIES EQUITY Jul 10 Accounts Payable 190,000.00 2 Notes Payable 190.000.00 1 Notes Payable 199,500.00 4 Accounts Payable 190,000.00 1 3 9.500.00 1 Interest Expense You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct Short-Term Note Payable Shaded cells have feedback You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (induding interest) did not have a date and was not correct Journalize the payment of the note at maturity as it should have been journalized. Don't forget to include the date. Assume a 360-day year Question not attempted. PAGE 25 JOURNAL Score: 037 ACCOUNTING EQUATION DATE DESCEPTION POST RER DET TOUTY 1 2 3 Points 017 perfield and Company Chart of Accounts Payroll Short-Term Note Payable Shaded cols have feedback Installment Note The following journal entry was made by your predecessor to record the annual payment on a 5%, 10 year installment note. PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION CREDIT ASSETS LIABILITIES EQUITY POSTRE 710 1 Oct. 1 Interest Expense 95,663.00 2 Notes Payable 215 606,899.00 3 Cash 110 702.562.00 Using the information provided, compute the following amounts 1. What was the carrying amount (book value) of the installment note before the payment on October 1? S Copperfield and Company You've just started your first accounting job, as the accounts payable and payroll chark for Copperfield and Company, a provider of delicate wine glasses to restaurants. Your predecessor of the job suddenly, and was not able to complete all the tasks before leaving you need to get up to speed and complete the unfinished as soon as posible Your tasks on your first day are the following 1. Review the Payroll Journal entries made by your predecessor 2. Compute the relevant amounts for the company's short-term noto payable and determine whether your predecessor's journal etter we correct. 3. Confirm the journal entry for this year's payment on an installment note 4. Make a recommendation as to whether the company should jumalize any warranty expense for the month You decide to get started the sooner the better Chart of Accounts CHART OF ACCOUNTS Copperfield and Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 112 Accounts Receivable 610 Interest Revenue 113 Interest Receivable 114 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 117 Supplies 118 Prepaid Insurance 520 Sales Salaries Expense 521 Factory Wages Expense 522 Officers Salaries Expense 120 Land 523 Delivery Expense 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment 524 Depreciation Expense-Building 526 Repairs Expense 529 Selling Expenses Copperfield and Company Payroll Short-Term Note Payable Chart of Accounts LIABILITIES 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 536 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 210 Accounts Payable 211 Salaries Payable 213 Interest Payable 215 Notes Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 220 Retirement Contributions Payable 221 Charitable Contributions Payable 222 Medical Insurance Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 228 Product Warranty Payable 540 Miscellaneous Expense 710 Interest Expense 536 Pension Expense hart of Accounts 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 219 Employees State Income Tax Payable 220 Retirement Contributions Payable 710 Interest Expense 221 Charitable Contributions Payable 222 Medical Insurance Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 228 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Payroll Shaded cells have feedback X The following into Journal entries for Oct. 15 were made by your predecessor For EICA, assume that the social security rate is 60% and the Medicare rate is 15%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees Review the journal entries, then answer the questions that follow PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTI DET CREDIT ASSETS LABILITIES EQUITY . 108.000.00 38.800,00 72.000.00 151,200.00 Oct 15 Sales Sataries Expense Officers Salaries Expense Office Salaries Expense Factory Wages Expense Social Security Tax Payable Medicare Tax Payable Emoloyees Federal Income Tax Payable Medical Insurance Payable 43.200.00 10.000.00 119.600.00 79.200.00 Payroll Shaded cells have feedback 19,200.00 108,000.00 + 10 349,200.00 + 11 55.271.00 Medical Insurance Payable Retirement Contributions Payable Salaries Payable 15 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 15 Pension Expense 43,200.00 10,800.00 11 1 5 164.00 15 1.107.00 1 57.600.00 57.600.00 . Payroll Shaded cells have feedback X in order to confirm the previous payroll can you save been asked to supply clowing amounts based on your review of the payments These amounts will be checked against the company records and investigated further if necessary 1. Determine the payroll amount subject to todetal and state unemployment taxes in this payroll 5 Point 0/1 2 What is the total payroll for Copperfield and Company shown in these journal entries? S Points 011 3. What is Copperfield and Company's share of FICA taxes in this payroll? Is Points 0/1 4. How much has Copperfield and Company contributed to employee 401k plans in this payroll? Pr Copperfield and Company Chart of Accounts Payroll Short-Term Note Payable Short-Term Note Payable Shaded calls have feedback Copperfield and Company issued a 90-day, 500% note for $190,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity. PAGE 3 JOURNAL ACCOUNTING EQUATION DUTE DESCRIPTION POST. RER DELIT CRITET ASSETS LIABILITIES EQUITY Jul 10 Accounts Payable 190,000.00 2 Notes Payable 190.000.00 1 Notes Payable 199,500.00 4 Accounts Payable 190,000.00 1 3 9.500.00 1 Interest Expense You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct Short-Term Note Payable Shaded cells have feedback You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (induding interest) did not have a date and was not correct Journalize the payment of the note at maturity as it should have been journalized. Don't forget to include the date. Assume a 360-day year Question not attempted. PAGE 25 JOURNAL Score: 037 ACCOUNTING EQUATION DATE DESCEPTION POST RER DET TOUTY 1 2 3 Points 017 perfield and Company Chart of Accounts Payroll Short-Term Note Payable Shaded cols have feedback Installment Note The following journal entry was made by your predecessor to record the annual payment on a 5%, 10 year installment note. PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION CREDIT ASSETS LIABILITIES EQUITY POSTRE 710 1 Oct. 1 Interest Expense 95,663.00 2 Notes Payable 215 606,899.00 3 Cash 110 702.562.00 Using the information provided, compute the following amounts 1. What was the carrying amount (book value) of the installment note before the payment on October 1? S