Question
The general ledger of Fast ShipFast Ship at June30, 2016, the end of the company's fiscal year, includes the following account balances before payroll and
The general ledger of Fast ShipFast Ship at June30, 2016, the end of the company's fiscal year, includes the following account balances before payroll and adjusting entries.
Additional info.
a. | The long-term debt is payable in annual installments of $48,000 with the next installment due on July 31. On that date, Fast Ship will also pay one year's interest at 10%. Interest was paid on July 31 of the preceding year. Make the adjusting entry to accrue interest expense at year-end. | ||||
b. | Gross unpaid salaries for the last payroll of the fiscal year were $4,700. Assume that employee income taxes withheld are $980 and that all earnings are subject to OASDI. | ||||
c. | Record the associated employer taxes payable for the last payroll of the fiscal year, $4,700. Assume that the earnings are not subject to unemployment. | ||||
d. | On February 1, the company collected one year's rent of $6,900 in advance. For all payroll calculations, use the following tax rates and round amounts to the nearest cent:
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