Question

Please help me solve all the Requirements problems 1,2,3,4,5,6, and 8.

Please give clear details and explanations. Please label each requirement with the solution.

Thank you, have a wonderful day!

The Tusquittee Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Tusquittee Company is authorized to issue 100,000 shares of $1 par value common stock and 50,000 shares of 5%, $50 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 6% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month. Following is the chart of accounts for The Tusquittee Company. As a new business, all beginning balances are $0.

Answer 1

Answer to 1(a) Amount of loan financed Time period (in yrs) Interest Rate Monthly interest rate No of installments $ 2,00,000.00 10 8.00% 0.6796 120 Monthly payment amount $ -2,426.55 Month Amortization table (payment rounded to near cent) Interest expens Monthly payment Principle repaymer Outstanding Principle, ol $ 2,00,000.00 1 $ 1,333.33 $ 2,425.00 $ 1,091.67 $ 1,98,908.33 21 $ 1,326.06 $ 2,425.00 $ 1,098.94 $ 1,97,809.39 3 $ 1,318.73 $ 2,425.00 $ 1,106.27 $ 1,96,703.12 Answer to 1(b) for the month Oct Name Kate Jones Mary Smith Sherry martin Total Gross salary $ 6,000.00 $ 5,000.00 $ 3,000.00 $ 14,000.00 federal taxes $ 1,800.00 $ 1,000.00 $ 450.00 $ 3,250.00 Payroll register deductions Helath insurance FICA-Quasdi $ 300.00 $ $ 300.00 $ $ 300.00 $ $ 900.00 $ FICA-medicare 372.00 $ 87.00 310.00 $ 72.50 186.00 $ 43.50 868.00 $ 203.00 Employer taxes Net pay F ICA-QuaFICA-med FUTA $ 3,441.00 $ 372.00 S 87.00 S 36.00 $ 3,317.50 $ 310.00 $ 72.50 $ 30.00 $ 2,020.50 $ 186.00 $ 43.50 $ 18.00 $ 8,779.00 $ 868.00 $ 203.00 $ 84.00 SUTA $ 324.00 $ 270.00 $ 162.00 $ 756.00 for the month Nov Name Kate Jones Mary Smith Sherry martin Total Payroll register deductions Gross salary federal taxes Helath insurance FICA-Quasdi $ 6,000.00 $ 1,800.00 $ 300.00 $ $ 5,000.00 $ 1,000.00 $ 300.00 $ $ 3,000.00 $ 450.00 $ 300.00 $ $ 14,000.00 $ 3,250.00 $ 900.00 $ F ICA-medicare 372.00 $ 87.00 310.00 $ 72.50 186.00 $ 43.50 868.00 $ 203.00 Emplover taxes Net pay FICA-QuaFICA -med FUTA SUTA $ 3,441.00 $ 372.00 $ 87.00 $ 6.00 $ 54.00 $ 3,317.50 $ 310.00 $ 72.50 $ 12.00 $ 108.00 $ 2,020.50 $ 186.00 $ 43.50 $ 18.00 $ 162.00 $ 8,779.00 $ 868.00 $ 203.00 $ 36.00 $ 324.00 for the month Dec Name Kate Jones Mary Smith Sherry martin Total Payroll register deductions Employer taxes Gross salary federal taxes Helath insurance FICA-Quasdi FICA-medicare Net pay FICA-Quas FICA -med FUTA $ 6,000.00 $ 1,800.00 $ 300.00 $ 372.00 $ 87.00 $ 3,441.00 $ 372.00 $ 87.00$ $ 5,000.00 $ 1,000.00 $ 300.00 $ 310.00 $ 72.50 $ 3,317.50 $ 310.00 $ 72.50 $ - $ 3,000.00 $ 450.00 $ 300.00 $ 186.00 $ 43.50 $ 2,020.50 $ 186.00 $ 43.50 $ 6.00 $ 14,000.00 $ 3,250.00 $ 900.00 $ 868.00 $ 203.00 $ 8,779.00 $ 868.00 $ 203.00 $ 6.00 SUTA $ . $ - $ 54.00 $ 54.00 Answer to 1c Calculation of employer taxes For the month October FICA-Medicare tax payable FICA-OASDI tax payable Federal Unemployment taxes payable State Unemployment taxes payable subject to tax Rate $ 14,000 $ 14,000 $ 14,000 $ 14,000 Amount 1.4596$ 203.00 6.20% S 8 68.00 0.6096 $ 84.00 5.40% S 756.00 For the month November FICA-Medicare tax payable FICA-OASDI tax payable Federal Unemployment taxes payable (first 7000 each) State Unemployment taxes payable (for first 7000 each) Subject to tax Rate $ 14,000 $ 14,000 $ 6,000 $ 6,000 1.45% 6.20% 0.60% 5.4096 Amount $ $ S $ 203.00 868.00 36.00 324.00 For the month December FICA-Medicare tax payable FICA-OASDI tax payable Federal Unemployment taxes payable (first 7000 each) State Unemployment taxes payable (for first 7000 each) Subject to tax Rate $ 14,000 $ 14,000 $ 1,000 $ 1,000 Amount 1.45% $ 6.20% $ 0.6096 $ 5.40% $ 203.00 868.00 6.00 54.00

In the books of Tusquitee Company General journal Description Debit Si no. Date Credit 11 $2,50,000 Oct-01 Cash Common Stock- $1 par value Paid in capital in excess of par-common (being stock issued) $ 25,000 $ 2,25,000 2 Oct-01 Land $ 40,000 Building $1,60,000 Mortgage payable $ 2,00,000 (being land & building purchased against a 8% mortgage) $ 10,000 Oct-01 Stores fixture Notes payable (being fixtures bought against 10% note) $ 10,000 $1,25,000 Oct-03 Merchandise Inventory Accounts Payable (being inventory purchased) $ 1,25,000 IS 160 Oct-15 Utilities Expenses Cash (being expenses paid) $ 160 $1,96,100 Oct-31 Cash Sales revenue Sales Tax Payable (185000*6%) (to record sales) $ 1,85,000 $ 11,100 $1,10,000 Oct-31 Cost of goods sold Merchandise Inventory (being cost of goods sold recorded) $ 1,10,000 I $ 14,800 Oct-31 Warranty expenses (185000*8%) Warranty payable (to record warranty expense) $ 14,800 Oct-31 Salaries Expense $ 14,000 Employee Income tax payable Employee health Insurance payable FICA QASDI Tax payable FICA Medicare tax payable Cash (being Salaries Expenses recorded & paid) $ S S $ $ 3,250 900 868 203 8,779 $ 1,911 $ $ 868 203 Oct-31 Payroll tax expense FICA QASDI Tax payable FICA Medicare tax payable FUTA payable SUTA Payable (being employer payroll taxes accrued) 84 756 S 2.425 Nov-01 Mortgage payable cash (being 1st mortgage paid) $ 2,425 $1,25,000 Nov-03 Accounts payable Cash (being cash paid) $ 1,25,000 $1,50,000 Nov-10 Merchandise Inventory Accounts Payable (being inventory purchased) $ 1,50,000 $ 7,500 Nov-12 Treasury stock-common (500*15) Cash (being treasury stock purcahsed) $ 7,500 Nov-15 FICA QASDI Tax payable FICA Medicare tax payable FUTA payable SUTA Payable Cash (being payroll taxes noe paid) $ $ S $ 1,736 406 84 756 $ 2,982 $ 11,100 Nov-15 Sales Tax payable cash (being sales tax payable now paid) $ 11,100 $ 6,000 Nov-16 Warranty liabilty Cash (being warranty claims paid) $ 6,000 $ 24,500 Nov-17 Dividend (25000-500)*1 Dividend payable (being dividend declared) $ 24,500 Nov-18 Utilities Expenses Cash (being expenses paid) $ 245 $ 24,500 Nov-27 Dividend payable Cash (being dividend paid) $ 24,500 $1,48,400 Nov-30 Cash Sales revenue Sales Tax Payable (140000*6%) (to record sales) $1,40,000 $ 8,400 sold $ 84,000 Nov-30 Cost of goods sold Merchandise Inventory (being cost of goods sold recorded) $ 84,000 $ 11,200 Nov-30 Warranty expenses (140000*8%) Warranty payable (to record warranty expense) $ 11,200 $ 14,000 Nov-30 Salaries Expense Employee Income tax payable Employee health Insurance payable FICA QASDI Tax payable FICA Medicare tax payable Cash (being Salaries Expenses recorded & paid) $ $ $ $ $ 3,250 900 203 868 8,779 $ Nov-30 Payroll tax expense FICA QASDI Tax payable FICA Medicare tax payable FUTA payable SUTA Payable (being employer payroll taxes accrued) 1,431 S868 IS 203 36 $ 324 $ 2,425 Dec-01 Mortgage payable cash $ 2,425 $1,50,000 Dec-10 Accounts payable Cash (being cash paid) $1,50,000 $ 7,500 Dec-12 Warranty liabilty Cash (being earranty claims paid) $ 7,500 6,000 Dec-15 Cash (300*20) $ treasury stock-common Paid in capital from treasury stock transaction $ $ 4,500 1,500 Dec-15 |FICA QASDI Tax payable FICA Medicare tax payable FUTA payable SUTA Payable Cash (being payroll taxes now paid) IS $ $ $ 1,736 406 36 324 $ 2,502 $ 8,400 Dec-15 Sales tax payable Cash (being taxes paid) 400 $ 220 Dec-18 Utilities expense Cash $ 220 $ 90,000 Dec-19 Merchandise inventory Accounts paybale $ 90,000 $2,22,600 Dec-31 Cash Sales revenue Sales Tax Payable (210000*6%) (to record sales) $ 2,10,000 $ 12,600 $1,26,000 Dec-31 Cost of goods sold Merchandise Inventory (being cost of goods sold recorded) $1,26,000 $ 16,800 Dec-31 Warranty expenses (210000*8%) Warranty payable (to record warranty expense) $ 16,800 $ 14,000 Dec-31 Salaries Expense Employee Income tax payable Employee health Insurance payable FICA QASDI Tax payable FICA Medicare tax payable Cash (being Salaries Expenses recorded & paid) $ $ $ $ $ 3,250 900 868 203 8,779 S 1,131 Dec-31 Payroll tax expense FICA QASDI Tax payable FICA Medicare tax payable FUTA payable SUTA Payable (being employer payroll taxes accrued) $ $ $ $ 868 203 6 54