Question 1.

On March 3rd your company made a sale on account to Mt. Sinai Missionary Baptist Church in the amount of $619.00 with tax included (7.5%). When the order was received a credit memo was issued in the amount of $100.00 due to a damaged product that was delivered (tax will need to be added to this portion of this transaction).

Make sure that all journal entries are done in order based on the questions.

*tip - you must first calculate the sale w/o tax to make the initial journal entry*

1. Make the correcting entry necessary to update the Churches A/R account.
2. Upon review you realized that they made an error in billing. The Church is tax exempt. Make a correcting entry for this as well.
3. What is the ending amount for A/R sub ledger account?

Question 2.

Calculate an employee check for an employee that earns $35K per year.

What would be your payroll entry for this employee who is paid semi-monthly? He earned 93 total hours and 5 hours of the total was overtime. He has one deduction for medical the cost is $75.00.

Other facts:

1. He claimed 4 allowances on his W-4
2. The employee is single.

1. What is the employee wage?
2. What is the total earnings for this employee?
3. What is the employee Net pay?

Question 1.

On March 3rd your company made a sale on account to Mt. Sinai Missionary Baptist Church in the amount of $619.00 with tax included (7.5%). When the order was received a credit memo was issued in the amount of $100.00 due to a damaged product that was delivered (tax will need to be added to this portion of this transaction).

Make sure that all journal entries are done in order based on the questions.

*tip - you must first calculate the sale w/o tax to make the initial journal entry*

1. Make the correcting entry necessary to update the Churches A/R account.
2. Upon review you realized that they made an error in billing. The Church is tax exempt. Make a correcting entry for this as well.
3. What is the ending amount for A/R sub ledger account?

Question 2.

Calculate an employee check for an employee that earns $35K per year.

What would be your payroll entry for this employee who is paid semi-monthly? He earned 93 total hours and 5 hours of the total was overtime. He has one deduction for medical the cost is $75.00.

Other facts:

1. He claimed 4 allowances on his W-4
2. The employee is single.

1. What is the employee wage?
2. What is the total earnings for this employee?
3. What is the employee Net pay?

Question 3.

The board decided to give a dividend to the stockholders. There are 100,000 outstanding stocks. The dividend they elected to pay was $125K based on earnings from the previous year; those earnings were $90K.

1. What were the steps to be taken to payout the dividend?
2. This is the beginning of a new year when will the first dividend be paid.

Question 4.

Your company has use of several special journals and it is now the end of April. With only the information given please answer the questions below.

On your purchases Journal these were the transactions listed:

- Perrier Company - $350.00

4/12 - Essentia - $654.00

4/19 - Arrowhead - $1,237.00

4/27 - Zephyrhills - $ 2,450.00

On the CPJ

4/16 - Zephyrhills - $975.00

4/17 - SDG&E - $1000.00

4/21 - Purchases $575.00

4/22 - Purchases $1,250.00

5/1 - Purchase - $1,750

5/3 - Essentia - $300.00

Additional information:

Accounts with existing balances:

Essentia - $500.00, Zephyrhills - $1,000.00

1. Create a schedule of accounts payable with the information listed?
2. What is the total purchases balance?
3. How much was spent on purchases for the month?

Determine how much cash was spent? (money that came out of the bank account

question 5

True or False:

The account number for a sub ledger account is usually more digits than the controlling account?

A contra-account to a main account that has a normal credit balance also as a normal credit balance?

Dividend account has a 3000 classification and therefore has a normal credit balance?