Im having problems with these 2 questions Chen Company completed the following transactions and events involving its delivery trucks 2010 Jan 1 Paid $20,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five year life and a $2,000 salvage value Delivery truck costs are recorded in the Trucks account Dec 31 Recorded annual straight line depreciation on the truck 2011 Dec 31 Due to new information obtained earlier in the year, the truck u2019s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700 Recorded annual straight line depreciation on the truck 2012 Dec 31 Recorded annual straight line depreciation on the truck Dec 31 Sold the truck for $5,400 cash Required Prepare journal entries to record these transactions and events in the given order (Round your intermediate calculations and final answers to the nearest dollar amount Omit the $ sign in your response ) Date General Journal Debit Credit Jan 1, 2010 (Click to select) Trucks Loss on disposal of trucks Sales Cash Depreciation expense trucks Accounts receivable Accumulated depreciation trucks Accounts payable (Click to select) Depreciation expense trucks Accounts receivable Accumulated depreciation trucks Accounts payable Cash Trucks Sales Loss on disposal of trucks Dec 31, 2010 (Click to select) Accumulated depreciation trucks Trucks Depreciation expense trucks Accounts payable Cash Sales Loss on disposal of trucks Accounts receivable (Click to select) Trucks Sales Accumulated depreciation trucks Depreciation expense trucks Loss on disposal of trucks Accounts payable Cash Accounts receivable Dec 31, 2011 (Click to select) Accumulated depreciation trucks Depreciation expense trucks Cash Accounts payable Accounts receivable Trucks Loss on disposal of trucks Sales (Click to select) Cash Trucks Accumulated depreciation trucks Accounts receivable Loss on disposal of trucks Depreciation expense trucks Accounts payable Sales Dec 31, 2012 (Click to select) Accounts receivable Cash Accounts payable Accumulated depreciation trucks Sales Depreciation expense trucks Loss on disposal of trucks Trucks (Click to select) Depreciation expense trucks Accounts receivable Cash Accumulated depreciation trucks Trucks Loss on disposal of trucks Accounts payable Sales Dec 31, 2012 (Click to select) Accounts receivable Loss on disposal of trucks Cash Accounts payable Sales Trucks Depreciation expense trucks Accumulated depreciation trucks (Click to select) Accumulated depreciation trucks Cash Accounts receivable Depreciation expense trucks Loss on disposal of trucks Sales Trucks Accounts payable (Click to select) Trucks Accumulated depreciation trucks Depreciation expense trucks Accounts receivable Sales Accounts payable Loss on disposal of trucks Cash (Click to select) Accounts payable Accounts receivable Loss on disposal of trucks Depreciation expense trucks Trucks Accumulated depreciation trucks Cash Sales On January 8, the end of the first weekly pay period of the year, Royal Company's payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6 20 , FICA Medicare taxes at the rate of 1 45 , $13,060 of federal income taxes, $1,450 of medical insurance deductions, and $780 of union dues No employee earned more than $7,000 in this first period Required 1 1 Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company (Round your answers to 2 decimal places Omit the $ sign in your response ) FICA u2014Social sec taxes payable $ FICA u2014Medicare taxes payable $ 1 2 Prepare the journal entry to record Royal Company's January 8 (employee) payroll expenses and liabilities (Round your answers to 2 decimal places Omit the $ sign in your response ) Date General Journal Debit Credit Jan 8 (Click to select) Sales salaries expense Employee medical insurance payable Employee union dues payable Office salaries expense Salaries payable FICA Medicare taxes payable FICA Social sec taxes payable Employee fed inc taxes payable (Click to select) Employee medical insurance payable Employee fed inc taxes payable FICA Social sec taxes payable Office salaries expense Sales salaries expense Employee union dues payable Salaries payable FICA Medicare taxes payable (Click to select) Employee union dues payable Salaries payable Sales salaries expense FICA Medicare taxes payable Employee fed inc taxes payable Employee medical insurance payable FICA Social sec taxes payable Office salaries expense (Click to select) Salaries payable Employee union dues payable FICA Medicare taxes payable Employee fed inc taxes payable Employee medical insurance payable FICA Social sec taxes payable Sales salaries expense Office salaries expense (Click to select) Employee union dues payable Office salaries expense FICA Medicare taxes payable Employee fed inc taxes payable Salaries payable Employee medical insurance payable FICA Social sec taxes payable Sales salaries expense (Click to select) Salaries payable Employee fed inc taxes payable FICA Medicare taxes payable Employee union dues payable Sales salaries expense FICA Social sec taxes payable Employee medical insurance payable Office salaries expense (Click to select) FICA Social sec taxes payable Office salaries expense Employee medical insurance payable Employee union dues payable Salaries payable Sales salaries expense FICA Medicare taxes payable Employee fed inc taxes payable (Click to select) Office salaries expense Employee medical insurance payable FICA Medicare taxes payable FICA Social sec taxes payable Employee union dues payable Sales salaries expense Salaries payable Employee fed inc taxes payable 2 Prepare the journal entry to record Royal's (employer) payroll taxes resulting from the January 8 payroll Royal's merit rating reduces its state unemployment tax rate to 2 of the first $7,000 paid each employee The federal unemployment tax rate is 0 8 (Round your answers to 2 decimal places Omit the $ sign in your response ) Date General Journal Debit Credit Jan 8 (Click to select) Salaries payable FICA Social sec taxes payable FICA Medicare taxes payable Sales salaries expense Federal unemployment taxes payable State unemployment taxes payable Payroll taxes expense Office salaries expense (Click to select) Salaries payable FICA Social sec taxes payable Office salaries expense Federal unemployment taxes payable State unemployment taxes payable FICA Medicare taxes payable Sales salaries expense Payroll taxes expense (Click to select) FICA Social sec taxes payable Federal unemployment taxes payable Office salaries expense Salaries payable Sales salaries expense State unemployment taxes payable Payroll taxes expense FICA Medicare taxes payable (Click to select) Salaries payable Payroll taxes expense FICA Social sec taxes payable Office salaries expense State unemployment taxes payable FICA Medicare taxes payable Federal unemployment taxes payable Sales salaries expense (Click to select) Sales salaries expense State unemployment taxes payable Salaries payable Payroll taxes expense FICA Medicare taxes payable Office salaries expense Federal unemployment taxes payable FICA Social sec taxes payable

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 16, 2024

Im having problems with these 2 questions. Chen Company completed the following transactions and events involving its delivery trucks. 2010 Jan. 1 Paid $20,515 cash

Im having problems with these 2 questions.

Chen Company completed the following transactions and events involving its delivery trucks.

*2010*
Jan.	1	Paid $20,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account.
Dec.	31	Recorded annual straight-line depreciation on the truck.

*2011*
Dec.	31	Due to new information obtained earlier in the year, the truck%u2019s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck.

*2012*
Dec.	31	Recorded annual straight-line depreciation on the truck.
Dec.	31	Sold the truck for $5,400 cash.

Required:

Prepare journal entries to record these transactions and events in the given order. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Jan. 1, 2010

Dec. 31, 2010

Dec. 31, 2011

Dec. 31, 2012

On January 8, the end of the first weekly pay period of the year, Royal Company's payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,450 of medical insurance deductions, and $780 of union dues. No employee earned more than $7,000 in this first period.

Required:
1.1	Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)


FICA%u2014Social sec. taxes payable	$
FICA%u2014Medicare taxes payable	$

1.2

Prepare the journal entry to record Royal Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8

Prepare the journal entry to record Royal's (employer) payroll taxes resulting from the January 8 payroll. Royal's merit rating reduces its state unemployment tax rate to 2% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)