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Warren 13e Principle Accounting

PR10-2A General Entries Answer needed

Follow the steps below to complete Problem 10-2A using Cengage General Ledger. To access additional Help, click on the Help button that appears at the bottom of the screen. 1. All account setups and opening balances required to begin this problem are loaded when you select the problem from the CengageNOW assignment menu. Click on the Save button at the upper-right of your screen at any point to save your work if you need to stop working to continue later. Your work will automatically be restored when you return. 2. Set the System Date at the bottom of the screen to 12/30/16. 3. On December 30, record the payroll for the week ended December 30 using the information shown in the text problem replicated in the frame to the left, in the General Journal. Assume that the payroll is to be paid on December 31. 4. On December 30, record the employer's payroll taxes in the General Journal for the payroll to be paid on December 31. Of the total payroll for the last week of the year, $35,000 is subject to unemployment compensation taxes. 5. Display the journal entries. 6. Make corrections to the journal entries, if necessary. 7. On December 30, record the payroll for the week ended December 30 in the General Journal. Assume that the payroll is to be paid on January 5 of the following fiscal year. 8. On January 5, record the employer's payroll taxes in the General Journal for the payroll to be paid on January 5. Since it is a new fiscal year, all $675,000 in salaries is subject to unemployment compensation taxes. 9. Display the journal entries. Make corrections to the journal entries, if necessary. 10. Click on the Save button on the upper-right of the screen to save your work to this point. 11. When you are comfortable that you have completed all steps of the problem correctly, click on the Check My Work link if it is available, or click on the Submit Assignment for Grading button on the upper-right of your screen. The program will then display the results of the grading, indicating accounts in error with a red X. Note that grading in Cengage Learning General Ledger is based on the final General Ledger account balances, not on the order of transactions. \f03/25/16 Page 1 Qualitech Co. Detail Report 01/05/17 Field Student Data General Ledger Accounts Cash 1,530,074.00 Dr Accounts Receivable 1,188,203.00 Dr Merchandise Inventory 5,281,627.00 Dr Prepaid Insurance 34,050.00 Dr Store Supplies 17,825.00 Dr Store Equipment 1,962,300.00 Dr Accum. Depr.--Store Eqpt. 255,000.00 Cr Accounts Payable 778,061.00 Cr Salaries Payable 957,150.00 Cr Social Security Tax Pay. 162,000.00 Cr Medicare Tax Payable 40,500.00 Cr Emp. Income Tax Payable 237,600.00 Cr State Unemploy. Tax Pay. 5,680.00 Cr Fed. Unemploy. Tax Pay. 38,340.00 Cr Bond Deductions Payable 29,700.00 Cr Group Insurance Payable 24,300.00 Cr Unfunded Pension Liab. 0.00 Vacation Pay Payable 0.00 Retained Earnings 9,948,418.00 Cr Dividends 3,150,000.00 Dr Income Summary 0.00 Sales 35,771,200.00 Cr Cost of Merchandise Sold 17,646,000.00 Dr Sales Salaries Expense 7,936,000.00 Dr Advertising Expense 247,100.00 Dr Depr. Exp.--Store Eqpt. 0.00 Store Supplies Expense 0.00 Misc. Selling Expense 139,050.00 Dr 03/25/16 Page 2 Field Student Data Warehouse Salaries Exp. 2,423,400.00 Dr Office Salaries Expense 2,398,600.00 Dr Rent Expense 1,050,000.00 Dr Heating & Lighting Exp. 329,650.00 Dr Insurance Expense 0.00 Misc. Administrative Exp. 116,800.00 Dr Payroll Tax Expense 2,797,270.00 Dr Pension Expense 0.00 Vacation Pay Expense 0.00 Bank Reconciliation Bank Reconciliation Bank Credit 0 Bank Reconciliation Bank Credit Bank Reconciliation Bank Charge 0 Bank Reconciliation Bank Charge 0 Bank Reconciliation Bank Charge 0 Bank Reconciliation Bank Charge Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. 0 Bank Reconciliation Outstanding Dep. Bank Reconciliation Bank Balance 0 Customization Business Organization Sole Prop. Type of Business Merch./CGS Departments Code One Dept. 03/25/16 Page 1 Qualitech Co. General Journal 01/05/17 Date Refer. Acct. Title Debit Credit Vendor 12/30/16 611 Sales Salaries Expense 350,000.00 12/30/16 711 Warehouse Salaries Exp. 180,000.00 12/30/16 712 Office Salaries Expense 145,000.00 12/30/16 219 Group Insurance Payable 12,150.00 12/30/16 218 Bond Deductions Payable 14,850.00 12/30/16 214 Emp. Income Tax Payable 118,800.00 12/30/16 211 Salaries Payable 478,575.00 12/30/16 213 Medicare Tax Payable 10,125.00 12/30/16 212 Social Security Tax Pay. 40,500.00 12/30/16 719 Payroll Tax Expense 12/30/16 217 Fed. Unemploy. Tax Pay. 12/30/16 216 State Unemploy. Tax Pay. 280.00 12/30/16 212 Social Security Tax Pay. 40,500.00 12/30/16 213 Medicare Tax Payable 10,125.00 12/30/16 611 Sales Salaries Expense 350,000.00 12/30/16 711 Warehouse Salaries Exp. 180,000.00 12/30/16 712 Office Salaries Expense 145,000.00 12/30/16 211 Salaries Payable 12/30/16 218 Bond Deductions Payable 52,795.00 1,890.00 478,575.00 14,850.00 Customer 03/25/16 Page 2 Date Refer. Acct. Title Debit Credit Vendor 12/30/16 219 Group Insurance Payable 12/30/16 214 Emp. Income Tax Payable 118,800.00 12/30/16 213 Medicare Tax Payable 10,125.00 12/30/16 212 Social Security Tax Pay. 40,500.00 01/05/17 719 Payroll Tax Expense 01/05/17 217 Fed. Unemploy. Tax Pay. 36,450.00 01/05/17 216 State Unemploy. Tax Pay. 5,400.00 01/05/17 212 Social Security Tax Pay. 40,500.00 01/05/17 213 Medicare Tax Payable 10,125.00 Totals 12,150.00 92,475.00 1,495,270.00 1,495,270.00 Customer 1. Assuming that the payroll for the last week of the year is to be paid on December 31, 2015, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. December 30, 2015, to record the payroll. Include the year when enter the date in the journal. Date Account Title & Explaination Debit December 30, 2015 Sales Salaries 35000 0 Warehouse salaries 18000 0 Office salaries Credit 14500 0 Income tax withheld 11880 0 Social security tax withheld 40500 Medicare tax withheld 10125 U.S. savings bonds 14850 Group insurance 12150 Salary & Wages Payable 47857 5 B. December 30, 2015, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $35,000 is subject to unemployment compensation taxes. Include the year when enter the date in the journal. Date Account Title & Explaination Debit December 30, 2015 Payroll Tax Expenses Credit 52795 Social security tax payable 40500 Medicare tax Payable 10125 FUTA Payable 1890 SUTA Payable 280 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, 2015, to record the payroll. Include the year when enter the date in the journal. Date Account Title & Explaination Debit December 30, 2015 Sales Salaries 35000 0 Warehouse salaries 18000 0 Office salaries Credit 14500 0 Income tax withheld 11880 0 Social security tax withheld 40500 Medicare tax withheld 10125 U.S. savings bonds 14850 Group insurance 12150 Salary & Wages Payable 47857 5 B. On page 12 of the journal: January 5, 2016, to record the employer's payroll taxes on the payroll to be paid on January 5, 2016. Because it is a new fiscal year, all $675,000 in salaries is subject to unemployment compensation taxes. Include the year when enter the date in the journal. Date Account Title & Explaination Debit January 5, 2016 Payroll Tax Expenses Credit 92475 Social security tax payable 40500 Medicare tax Payable 10125 FUTA Payable 36450 SUTA Payable 5400