Question
You are the controller at Star Wars, Inc. you must Create Journal Entries for the following transactions 27- Dec Paid bi-weekly wages via payroll checks.
You are the controller at Star Wars, Inc. you must Create Journal Entries for the following transactions
27- Dec Paid bi-weekly wages via payroll checks. The payroll summary is below:
Employee wages (gross) $6,120
FICA taxes withheld 468
Federal income taxes withheld 1,567
State income taxes withheld 355
Net pay $3,730
Employer's payroll taxes:
FICA tax $468
(no FUTA or SUTA)
27- Dec Star Wars, Inc. repurchases 1,000 shares of its own stock from an investor for $45 per share. The repurchase is recorded as Treasury Stock at its repurchase cost
27- Dec Paid $10,500 for ordinary repairs and maintenance on star ships.
28- Dec Star Wars, Inc. sold a used Star Destroyer to Chewbacca and Sons Co. for $30,100 cash. The original cost of the Star Destroyer was $200,000 with a salvage value of $25,000, a useful life of 10 years, and accumulated depreciation of $100,000 through the end of last fiscal year. Note: you will need to record 1/2's years depreciation for this year before recording the sale (the company policy is to depreciate assets for 1/2 year in the year of acquisition and disposal). Star Wars, Inc. uses the straight-line method to depreciate Star Destroyers.
Note: record depreciation expense first, then the disposal.
28- Dec Paid the A/P balance to Tattoine Inc from the 12/19 purchase. No discount applies.
28- Dec The Board of Directors of Star Wars Inc. declares a $2.50 per share cash dividend to be paid in January of the next year. You will need to determine the number of shares outstanding. See instructions for the beginning amount and don't forget to take into account previous transactions involving new shares issued. Take the amount directly out of retained earnings.
28- Dec Paid bill for advertisements run on Dec. 15th. The bill was for $9,150.
28- Dec Received payment from Vader Enterprises from the Dec. 13 sale. No discount applies.
30- Dec Purchased 280 units of product from Hyperspace Unlimited for $385 per unit on credit, terms n/30.
31- Dec Paid monthly salaries via payroll checks. The payroll summary is below:
Employee salaries (gross) $53,300
FICA taxes withheld 4,078
Federal income taxes withheld 8,154
State income taxes withheld 1,817
Net pay $39,251
Employer's payroll taxes:
FICA tax $4,078
(no FUTA or SUTA)
31- Dec Sold 180 units to Vader Enterprises for $830 each on credit.
31- Dec The petty cash custodian performs the month-end reconciliation and totals the receipts as follows:
Postage stamps used $58
Courier costs $73
Company lunch costs $61
Office decorations $30
$68 of cash remained on hand. Record the entry to reimburse the petty cash fund. Book any overage or shortage to Petty Cash Overage/Shortage. Use Misc. expense for all costs noted above.
31- Dec Deposited $30,000 in a bond sinking fund (related to paying back bonds payable). Use the Other assets account for the debit.
31- Dec Record the journal entry to decrease the petty cash fund to $250 from $300.
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