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The following transactions apply to Park Company for Year 1 : 1 . Received $ 5 0 , 0 0 0 cash from the issue
The following transactions apply to Park Company for Year :
Received $ cash from the issue of common stock.
Purchased inventory on account for $
Sold inventory for $ cash that had cost $ Sales tax was collected at the rate of percent on the inventory sold.
Borrowed $ from First State Bank on March Year The note had a percent interest rate and a oneyear term to maturity.
Paid the accounts payable see transaction
Paid the sales tax due on $ of sales. Sales tax on the other $ is not due until after the end of the year.
Salaries for the year for one employee amounted to $ Assume the Social Security tax rate is percent and the Medicare tax rate is percent. Federal income tax withheld was $
Paid $ for warranty repairs during the year.
Paid $ of other operating expenses during the year.
Paid a dividend of $ to the shareholders.
Adjustments:
The products sold in transaction were warranted. Park estimated that the warranty cost would be percent of sales.
Record the accrued interest at December Year
Record the accrued payroll tax at December Year Assume no payroll taxes have been paid for the year and that the unemployment tax rate is percent federal unemployment tax rate is percent ags per employee
Required: Post the transactions to Taccounts.
Cash
Accounts Payable
FICA tax payable social security
Federal unemployment tax payable
Sales tax payable
interest payable
common stock
sales revenue
operating expense
salaries expense
interest expense
merchandise inventory
employee income tax payable
FICA tax payable medicare
state unemployment tax payable
warranties payable
notes payable
dividends
cost of goods sold
payroll tax expense
warranty expense
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