Hi,

I have a few questions regarding my unit 4 accounting II assignment. Please note that those boxes that are green are correct and those boxes that are red are incorrect. Any help would be greatly appreciated.

Thank you,

Katie A. Vanlaningham

Question #1: The payroll of YellowCard Company for September 2013 is as follows. Total payroll was $486,000, of which $130,400 is exempt from Social Security tax because it represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess of $7,000 was $401,300. Income taxes in the amount of $89,180 were withheld, as was $8,290 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $106,800 and 1.45% in excess of $106,800. No employee for YellowCard makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if (a) the wages and salaries paid and (b) the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,250. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts .Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and . Explanation (a) Salaries an Debit Credit 486000 FICA Taxes Union Dues 8290 Withholding 89180 Cash (b) 27203.40 361326.60 Payroll Tax FICA Taxes FUTA Taxe SUTA Taxe 1016.40 Question #2 1 On February 2, the corporation purchased goods from Martin Company for $83,900 subject to cash discount terms of 3/10, n/30. . Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2 On April 1, the corporation bought a truck for $80,000 from General Motors Company, paying $4,000 in cash and signing a one. year, 10% note for the balance of the purchase price. 3 On May 1, the corporation borrowed $80,400 from Chicago National Bank by signing a $90,480 zero-interest-bearing note due one . year from May 1. 4 On August 1, the board of directors declared a $305,100 cash dividend that was payable on September 10 to stockholders of record . on August 31. Don't show me this message again for the assignment Your answer is partially correct. Try again. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date February 2 Account Titles and Explanation cash Accounts P February 26 cash Debit Credit 83900 83900 April 1 Cash 4000 Trucks 4000 No Entry May 1 Cash 80400 Notes Paya Interest Exp August 1 80400 10020 Cash 305100 Dividends P September 10 cash 305100 305100 Dividends P Don't show me this message again for the assignment 305100 Your answer is incorrect. Try again. Edwardson Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No Account Titles and . Explanation 1. 2. 3. 4. Debit Credit