Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 20X1. JackJoe, Inc. purchased equipment for $1,100,000. It cost an additional $100,000 to deliver install and calibrate the equipment. While it was

image text in transcribed
image text in transcribed
On January 1, 20X1. JackJoe, Inc. purchased equipment for $1,100,000. It cost an additional $100,000 to deliver install and calibrate the equipment. While it was being installed, the machine was dropped and it required $300,000 in repairs. This machine has a service life of 4 years, at which time it is expected that the device will be scrapped for a $X salvage value. Choose a salvage value, a number between $10,000 and $210,000. JackJoe uses the straight-line depreciation method. Calculate the annual depreciation expense, accumulated depreciation, and related calculations for X1. (5 points) Show how the asset and related accumulated depreciation would appear on a balance sheet at December 31, (b) 20X1. (10 points) Prepare journal entries to record the asset's acquisition, annual depreciation for X1, and the asset's eventual sale for $99.000 on Jan 1, X5, (5 points) (a) (C) Test 2: Question 5 PP&E Criteria Ratings Pts (a) Calculate the annual depreciation expense, accumulated depreciation, and related calculations for X1. (5 points) 5 pts (b) Show how the asset and related accumulated depreciation would appear on a balance sheet at December 31, 20X1 10 pts (c) Prepare journal entries to record the asset's acquisition, annual depreciation for X1, and the asset's eventual sale for $99,000 on Jan 1, X5. 5 pts Total Points: 20 YanYu Zheng is employed by JackJoe, Inc. During the month of January, YanYu earned her monthly salary of $100,000 ($1,200,000 for the year) Yanyu is single, and had $22,000 of federal income tax withheld from her pay for the month. YanYu works in a state without an income tax. YanYu's pay is subject to Social Security taxes at a 6.2% rate and Medicare at a 1.45% rate. The annual base for social security taxes is $140,000. JackJoe's payroll is subject to federal and state unemployment taxes at a rate of 6% on each employee's gross pay, up to $7,000 per year. (a) Complete YanYu's paycheck and the remittance advice fie. "paycheck stub"), (5 points) b) Prepare journal entries for YanYu's pay and the related payroll expenses. (2 journal entries) (5 points) What is JackJoe's (employer cost) total expense of payroll taxes FUTA/SUTA and FICA for employing YanYu for the year? (5 points) c) test 2: Question 6 Payroll Criteria Ratings Pts 5 pts (a) Complete YanYu's paycheck and the remittance advice te paycheck stub"). b) Prepare journal entries for YanYu's pay and the related payroll expenses. (2 journal entries) c) What is JackJoe's temployer cost total expense of payroll taxes FUTA/SUTA and FICA for employing YanYu for the year? 5 pts 5 pts Total Points: 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Julie Anne Ragatz

2nd Edition

1405196130, 978-1405196130

More Books

Students also viewed these Accounting questions

Question

Find vC(t) for t > 0 in the circuit in Fig. P6.63 if vC(0) = 0.

Answered: 1 week ago