Requirement 1a. In preparation for recording the transactions, prepare: An amortization schedule for the first 3 months of the mortgage payable issued on

OctoberOctober

1. Round interest calculations to the nearest dollar.

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	Beginning	Principal	Interest	Total	Ending
	Balance	Payment	Expense	Payment	Balance
10/01/2018					$320,000
11/1/2018	$320,000	$2,667	$1,333	$4,000	$317,333
12/1/2018	317,333	2,678	1,322	4,000	314,655
01/01/2019	314,655	2,689	1,311	4,000	311,966

Requirement 1b. In preparation for recording the transactions, prepare: Payroll registers for

OctoberOctober ,

NovemberNovember ,

and

DecemberDecember.

All employees worked

OctoberOctober

1 through

DecemberDecember

31 and are subject to the following FICA taxes: OASDI:

6.26.2 %

on first

$ 118 comma 500$118,500

earned; Medicare:

1.451.45 %

up to

$ 200 comma 000$200,000 ,

2.352.35 %

on earnings above

$ 200 comma 000$200,000.

Begin by preparing the payroll register for

OctoberOctober.

(Round all amounts to the nearest cent. Complete all answer boxes. Enter a "0" for any zero balances. Abbreviations used: Beg. = Beginning; Cum. = Cumulative; Earn. = Earnings; Med. = Medicare; Ins. = Insurance; With. = Withholdings.)

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	Earnings			Withholdings
	Beg.	Current	Ending
	Cum.	Period	Cum.			Income	Health	Total	Net
Employee	Earn.	Earnings	Earn.	OASDI	Med.	Tax	Ins.	With.	Pay
Jenning	$0.00	$5,600.00	$5,600.00	$347.20	$81.20	$1,680.00	$150.00	$2,258.40	$3,341.60
Shepard	0.00	4,800.00	4,800.00	297.60	69.60	960.00	150.00	1,477.20	3,322.80
Morgan	0.00	2,500.00	2,500.00	155.00	36.25	375.00	150.00	716.25	1,783.75
	$0.00	$12,900.00	$12,900.00	$799.80	$187.05	$3,015.00	$450.00	$4,451.85	$8,448.15

Next, prepare the payroll register for

NovemberNovember.

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	Earnings			Withholdings
	Beg.	Current	Ending
	Cum.	Period	Cum.			Income	Health	Total	Net
Employee	Earn.	Earnings	Earn.	OASDI	Med.	Tax	Ins.	With.	Pay
Jenning	$5,600.00	$5,600.00	$11,200.00	$347.20	$81.20	$1,680.00	$150.00	$2,258.40	$3,341.60
Shepard	4,800.00	4,800.00	9,600.00	297.60	69.60	960.00	150.00	1,477.20	3,322.80
Morgan	2,500.00	2,500.00	5,000.00	155.00	36.25	375.00	150.00	716.25	1,783.75
	$12,900.00	$12,900.00	$25,800.00	$799.80	$187.05	$3,015.00	$450.00	$4,451.85	$8,448.15

Finally, prepare the payroll register for

DecemberDecember.

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	Earnings			Withholdings
	Beg.	Current	Ending
	Cum.	Period	Cum.			Income	Health	Total	Net
Employee	Earn.	Earnings	Earn.	OASDI	Med.	Tax	Ins.	With.	Pay
Jenning	$11,200.00	$5,600.00	$16,800.00	$347.20	$81.20	$1,680.00	$150.00	$2,258.40	$3,341.60
Shepard	9,600.00	4,800.00	14,400.00	297.60	69.60	960.00	150.00	1,477.20	3,322.80
Morgan	5,000.00	2,500.00	7,500.00	155.00	36.25	375.00	150.00	716.25	1,783.75
	$25,800.00	$12,900.00	$38,700.00	$799.80	$187.05	$3,015.00	$450.00	$4,451.85	$8,448.15

Requirement 1c. In preparation for recording the transactions, prepare: Calculations for employer payroll taxes liabilities for

OctoberOctober ,

NovemberNovember ,

and

DecemberDecember :

OASDI:

6.26.2 %

on first

$ 118 comma 500$118,500

earned; Medicare:

1.451.45 %;

SUTA:

5.45.4 %

on first

$ 7 comma 000$7,000

earned; FUTA:

0.60.6 %

on first

$ 7 comma 000$7,000

earned. (Round your answers to the nearest cent.)

Begin by preparing the calculations for employer payroll taxes liabilities for

OctoberOctober.

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Tax	Taxable Earnings	Amount
OASDI	$12,900.00	$799.80
Medicare	12,900.00	187.05
SUTA	12,900.00	696.60
FUTA	12,900.00	77.40
		$1,760.85

Next, prepare the calculations for employer payroll taxes liabilities for

NovemberNove

The Lattimore Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Lattimore Company is authorized to issue 150,000 shares of $1 par value common stock and 60,000 shares of 6%, $40 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month Customers are charged a 7% state tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly sala on the last day of the month. Following is the chart of accounts for The Lattimore Company. As a new business, all beginning balances are $0 (Click the icon to view the chart of accounts.) The Lattimore Company completed the following transactions during the last quarte of 2018, its first year of More Info Oct. 31: Recorded October payroll and paid employees. (Enter all amounts to the nearest dollar.) Oct. 1 Issued 38,000 shares of S1 par value common stock for cash of $24 per share. 1 Issued a $320,000, 10-year, 5% mortgage payable for land with an existing store building Mortgage payments of $4,000 are due on the first day of each month, beginning Date Accounts Debit Credit November 1. The assets had the following market values: Land, $200,000; Building. $120,000 1 12,900 Salaries Expense Employee Income Taxes Payable Oct. 31 issued a one-year, 8% note payable for $7,200 for store fixtures The principal and 4451.85 interest are due October 1, 2019 3 Purchased merchandise inventory on account from Elite Supply for $124,000, terms n/30 15 Paid $200 for utilities. 31 Recorded cash sales for the month of $140,000 plus sales tax of 7%. The cost of the goods sold was $84,000 and estimated warranty payable was 6% Recorded October payroll and paid employees. Accrued employer payroll taxes for October Pald the first mortgage payment. 31 31 Choose from any list or enter any number in the input fields and then click Check Answer. Nov. 1 3 Paid Elite Supply for the merchandise inventory purchased on October 3. 10 Purchased merchandise inventory on account from Elite Supply for $200,000, tems n/30 12 Purchased 400 shares of treasury stock for $12 per share parts remaining The Lattimore Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Lattimore Company is authorized to issue 150,000 shares of $1 par value common stock and 60,000 shares of 6%, $40 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month Customers are charged a 7% state tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly sala on the last day of the month. Following is the chart of accounts for The Lattimore Company. As a new business, all beginning balances are $0 (Click the icon to view the chart of accounts.) The Lattimore Company completed the following transactions during the last quarte of 2018, its first year of More Info Oct. 31: Recorded October payroll and paid employees. (Enter all amounts to the nearest dollar.) Oct. 1 Issued 38,000 shares of S1 par value common stock for cash of $24 per share. 1 Issued a $320,000, 10-year, 5% mortgage payable for land with an existing store building Mortgage payments of $4,000 are due on the first day of each month, beginning Date Accounts Debit Credit November 1. The assets had the following market values: Land, $200,000; Building. $120,000 1 12,900 Salaries Expense Employee Income Taxes Payable Oct. 31 issued a one-year, 8% note payable for $7,200 for store fixtures The principal and 4451.85 interest are due October 1, 2019 3 Purchased merchandise inventory on account from Elite Supply for $124,000, terms n/30 15 Paid $200 for utilities. 31 Recorded cash sales for the month of $140,000 plus sales tax of 7%. The cost of the goods sold was $84,000 and estimated warranty payable was 6% Recorded October payroll and paid employees. Accrued employer payroll taxes for October Pald the first mortgage payment. 31 31 Choose from any list or enter any number in the input fields and then click Check Answer. Nov. 1 3 Paid Elite Supply for the merchandise inventory purchased on October 3. 10 Purchased merchandise inventory on account from Elite Supply for $200,000, tems n/30 12 Purchased 400 shares of treasury stock for $12 per share parts remaining