Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The general lodgor of Cukck Stip at Juno 30, 2024, the end of the company's fiscal year, indudes the following account balances before paysel and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The general lodgor of Cukck Stip at Juno 30, 2024, the end of the company's fiscal year, indudes the following account balances before paysel and acfusiling entlies. Click the icon lin vicw the account balances.) The addtional datar needed to develop the pwrroll and adjusting entries at June 30 are as follows (C5ck the icon 10 viow the addaional inlotration) (1) (Click the icno to view paryell tax rate infortation ) Fead the requirementil Requirements 1 and 2. Using the T-accounts opened for you, insert the unadjusted June 30 balances Joumalite and post the June 30 achuiting entries to the accourts. Idenilily each adjusting entry thy letter. Round to the nearest dollar We wil start with Requlement 2. poumallieig the journal eotrios, to assist us in posting to the T-accourti (Recoed debits lirst, then crecits. Select the englanation an thu last Gne ol the journal entry tablis) 2. The loeg:term debt is payable in annual installments of $30,000, with the next installment due on duly 31 On that date, Quick Ship will aluo pay ane year hiurust at 10\$3 Intarect aser naid on duhy 31 af the preceding year. Make the adjusting entry to accrue interest expense at yeat-end Data table More info a. The long-term debt is payable in annual installments of $30,000, with the next installment due on July 31 . On that date, Quick 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 $900 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 $6,300 in advance. More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000,2.35% on earnings above $200,000. Employer OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 eamed; SUTA: 5.4% on first $7,000 earned. Requirements 1. Using the T-accounts opened for you, insert the unadjusted June 30 balances. 2. Journalize and post the June 30 payroll and adjusting entries to the accounts. Identify each adjusting entry by letter. Round to the nearest dollar. 3. Prepare the current liabilities section of the balance sheet at June 30,2024

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions