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The general ledger of Prompt Ship at June 30, 2018, the end of the company's fiscal year, includes the following account balances before payroll and
The general ledger of Prompt Ship at June 30, 2018, the end of the company's fiscal year, includes the following account balances before payroll and adjusting entries. (Click the icon to view the account balances.) The additional data needed to develop the payroll and adjusting entries at June 30 are as follows: (Click the icon to view the additional information.) i (Click the icon to view payroll tax rate information.) Read the requirements. Requirements 1 and 2. Using the T-accounts opened for you, insert the unadjusted June 30 balances. Journalize and post the June 30 adjusting entries to the accounts. Identify each adjusting entry by letter. Round to the nearest dollar. We will start with Requirement 2, journalizing the journal entries, to assist us in posting to the T-accounts. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. The long-term debt is payable in annual installments of $39,600, with the next installment due on July 31. On that date, Prompt Ship will also pay one vear's interest at 10%. Interest was paid on July 31 of the precedina vear. Make the adiustina entry to accrue interest expense at vear-end. P11-30B (book/static) Question Help Data Table - X More Info More Info $ 118,000 a. 0 0 For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings. 0 Accounts Payable Interest Payable Salaries Payable Employee Income Taxes Payable FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable The long-term debt is payable in annual installments of $39,600, with the next installment due on July 31. On that date, Prompt 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 $4,800. Assume that employee income taxes withheld are $920 and that all earnings are subject to OASDI. C. Record the associated employer taxes payable for the last payroll of the fiscal year, $4,800. Assume that the earnings are not subject to unemployment compensation taxes. d. On February 1, the company collected one year's rent of $5,400 in advance. 0 0 0 Print Done 0 Unearned Rent Revenue 5,400 Long-Term Notes Payable 198,000 Print Done Print Done
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