Question

Entries for Discounted Note Payable

A business issued a 90-day note for $51,000 to a creditor on account. The note was discounted at 7%. Assume a 360-day year.

a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. If necessary, round to one decimal place.

a.

b. Journalize the entry to record the payment of the note at maturity.

b.

2.

Calculate Payroll

Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

	Consultant		Computer Programmer		Administrator
Regular earnings rate	$2,510 per week		$34 per hour		$46 per hour
Overtime earnings rate	Not applicable		1.5 times hourly rate		2 times hourly rate
Number of withholding allowances	3		2		1

For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70.

Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.

	Consultant	Computer Programmer	Administrator
Gross pay	$	$	$
Net pay	$	$	$

Answer 1

No	Accounts Tittles and explanations	Debit ($)	Credit ($)
(a)	Accounts Payable	50,108
	Interest Expense (51000*7%*90/360)	893
	Note Payable		51,000
	[To record the issuance of the note to the creditor]
(b)	Note Payable	51,000
	Cash		51,000
	[ To record the payment of the note at maturity ]

As per HOMEWORKLIB RULES, please ask the 2nd question separately.