Question
HW 9 1 PAYROLL ENTRIES J&W Buffet Co. employees earned $350,000 in the week ended December 17, 2010. Of this, $26,775 was deducted from employees
HW 9 1
PAYROLL ENTRIES
J&W Buffet Co. employees earned $350,000 in the week ended December 17, 2010. Of this, $26,775 was deducted from employees pay for FICA and $62,000 was deducted for income taxes.
Prepare the journal entry to record the employees portion of payroll for December 17, 2010.
Prepare the journal entry to record the employers share of FICA payroll taxes for December 17, 2010.
HW 9 2
NOTES PAYABLE
Mumford Co. borrowed a $100,000 note payable on June 1, 2010, with 6% interest. The note is due on May 31, 2011.
Prepare the journal entry to record the issuance of the note and receipt of cash on June 1, 2010.
Prepare the adjusting journal entry to record the interest owed at the end of the accounting period on December 31, 2010.
Prepare the journal entries to record the interest and principal payments to the lender on May 31, 2011.
HW 9 3
UNEARNED REVENUE
On January 1, 2009, Charlie Rangel paid $2,000 for a twoyear membership to the Beam Gym.
Prepare the journal entry to record the receipt of cash on January 1, 2009.
By December 31, 2009, one half of Rangels membership expired. Prepare the required adjusting journal entry on that date.
By December 31, 2010, the remainder of Rangels membership expired. Prepare the required adjusting journal entry on that date.
Post the entries above to the Unearned Revenue account:
Unearned Revenue
|
HW 9 4
ISSUING BONDS
Issuance of $800,000, 5-year, 8% payable annually (market rate 12%) for cash of $684,627 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of the bonds:
Complete the following interest schedule (assuming straight-line amortization):
Date | Cash Payment of Interest |
Interest Expense |
Amortization of Discount | Carrying Value (Net Liability) |
1/1/2007 | None | None | None |
|
12/31/2007 |
|
|
|
|
12/31/2008 |
|
|
|
|
12/31/2009 |
|
|
|
|
12/31/2010 |
|
|
|
|
12/31/2011 |
|
|
|
|
Prepare the journal entry to record the first payment of interest on 12/31/2007:
HW 9 5
ISSUING BONDS
Issuance of $1,200,000, 5-year, 10% payable annually (market rate 8%) for cash of $1,295,844 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of the bonds:
Complete the following interest schedule (assuming straight-line amortization):
Date | Cash Payment of Interest |
Interest Expense |
Amortization of Premium | Carrying Value (Net Liability) |
1/1/2007 | None | None | None |
|
12/31/2007 |
|
|
|
|
12/31/2008 |
|
|
|
|
12/31/2009 |
|
|
|
|
12/31/2010 |
|
|
|
|
12/31/2011 |
|
|
|
|
Prepare the journal entry to record the first payment of interest on 12/31/2007:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started