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x Data Table $ 114,000 0 0 0 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 Unearned Rent Revenue Long-Term Notes Payable 0 0 0 7,200 330,000 Print Done - x More Info a. The long-term debt is payable in annual installments of $66,000, with the next installment due on July 31. On that date, U-R- Shipping will also pay one year's interest at 9%. 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 $950 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 $7,200 in advance. Print Done More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $117,000 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000 Employer OASDI: 6.2% on first $117,000 earned; Medicare: 1.45% on all earnings. Print Done 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. 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 $66,000, with the next installment due on July 31. On that date, U-R- Shipping will also pay one year's interest at 9%. Interest was paid on July 31 of the preceding year. Make the adjusting entry to accrue interest expense at year-end. Date Accounts and Explanation Debit Credit (a) b. Gross unpaid salaries for the last payroll of the fiscal year were $4,700. Assume that employee income taxes withheld are $950 and that all earnings are subject to OASDI. (Round amounts to the nearest dollar.) Date Accounts and Explanation Debit Credit (b) d. On February 1, the company collected one year's rent of $7,200 in advance. Date Accounts and Explanation Debit Credit (d) The selected T-accounts have been opened for you. Insert the unadjusted June 30 balances, using a "Beg. Bal." posting reference to show the unadjusted balance of each account. If an account has a zero unadjusted balance, enter a "0" on the normal balance side of the account. Post the adjusting entries to the T-accounts using the corresponding letters (a) through (d) as posting references. Use a "Bal" posting reference to show the ending balance of each account. Accounts Payable FICA-OASDI Taxes Payable Interest Payable FICA-Medicare Taxes Payable Requirement 3. Prepare the current liabilities section of the balance sheet at June 30, 2016. U-R-Shipping Balance Sheet (partial) June 30, 2016Step by Step Solution
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