Outdoor Adventure Company's Alice and Zavier Walker are continuing their analysis of the company's position and...
Outdoor Adventure Company's Alice and Zavier Walker are continuing their analysis of the company's position and believe the company will need to borrow $ 30,000 in order to expand operations. They consult Mountain Man Bank and secure a 7%, one-year note on September 1, 2019, with interest due at maturity. Additionally, the company hires an employee, Jacob Valor, on September 1. Jacob will receive a salary of $ 6,000 per month. Payroll deductions include federal income tax at 40%, OASDI at 6.2%, Medicare at 1.45%, and monthly health insurance premium of $ 190. The company will incur matching FICA taxes, FUTA tax at 0.6%, and SUTA tax at 5.4%. Round calculations to two decimals. Omit explanations on journal entries. Requirement 1. Record the issuance of the $ 30,000 note payable on September 1, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit 2019 Sep. 1 Requirement 2. Record the employee payroll and employer payroll tax entries on September 30, 2019. (Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any journal entries.) Start by preparing the compound journal entry to record salaries expense and payroll withholdings on September 30, 2019. Do not record the employer payroll tax with this entry. We will do that in the following step. Date Accounts Debit Credit 2019 Sep. 30 Prepare the compound journal entry to record employer payroll taxes on September 30, 2019. Date Accounts Debit Credit 2019 Sep. 30 Requirement 3. Record all payments related to September's payroll. Payments are made on October 15, 2019. (Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the entry to show the payment to Jacob Valor. Do not record the payment of employer payroll taxes and employee withholdings yet. We will do that in the following step. Date Accounts Debit Credit 2019 Oct. 15 Now record a compound journal entry for the payment of employer payroll taxes and employee withholdings. Date Accounts Debit Credit 2019 Oct. 15 Requirement 4. Record the entry to accrue interest due on the note at December 31, 2019. (Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit 2019 Dec. 31 Requirement 5. Record the entry Outdoor Adventure Company would make to record the payment to the bank on September 1, 2020. (Record debits first, then credits. Exclude explanations from any journal entries.)
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Outdoor Adventure Company's Alice and Zavier Walker are
continuing their analysis of the company's position and...
I have answered majority of the questions (please correct me if I am wrong) but I...
I have answered majority of the questions (please correct me if
I am wrong) but I just need help on requirement 5 please!
Lenny Worthington is general manager of United Salons. During 2018, Worthington worked for the company all year at a $13,200 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Worthington's federal income tax withheld during 2018 was $1.980 per month, plus United incurred payroll tax expense on Worthington for FICA tax....
Caribbean Tours' total payroll for the month of January was $520,000. The following withholdings, fringe benefits,...
Caribbean Tours' total payroll for the month of January was $520,000. The following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld $ 52,000 Health insurance premiums paid by employer (payable to Blue Cross) 9,360 Contribution to retirement plan paid by employer (payable to Fidelity) 20,800 FICA tax rate (Social Security and Medicare) 7.65 % Federal and state unemployment tax rate 6.20 % Assume that none of the withholdings or payroll taxes has been paid...
Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA...
Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $3,000), life insurance (cost to the company, $330), and retirement benefits (cost to the company, 10% of salaries expense). 6(Click the icon to view payroll tax rate information.)...
Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars....
Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $410,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld Health insurance premiums (Blue Cross) paid by employer Contribution to retirement plan (Fidelity) paid by employer FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate $126,000 12,100 51,000 7.65% 6.20% Assume that Kashi has paid...
During January, Luxury Cruise Lines incurs employee salaries of $1.0 million. Withholdings in January are $76,500 for th...
During January, Luxury Cruise Lines incurs employee salaries of $1.0 million. Withholdings in January are $76,500 for the employee portion of FICA, $150,000 for federal income tax, $62,500 for state income tax, and $10,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $62,000 for federal and state unemployment tax and $30,000 for the employer portion of health insurance. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below....
Exercise 9-7 Payroll-related journal entries LO P3 BMX Company has one employee. FICA Social Security taxes...
Exercise 9-7 Payroll-related journal entries LO P3 BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Gross Pay through August $ 6,560 Gross Pay for September $ 820 a. Prepare the employer's September 30 journal entries to record the employer's payroll...
On August 1August 1, 20192019, The ResortThe Resort at Mill Lake, Inc., purchased inventory costing $...
On August 1August 1, 20192019, The ResortThe Resort at Mill Lake, Inc., purchased inventory costing $ 50 comma 000$50,000 by signing aa 66%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date.Read the requirements LOADING... . Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit 2019 Aug 1 Cash 50000 Note Payable, Short-term Requirement 2....
Suppose Freddy's Ltd. holds a loan receivable from a client. At the end of September, $75...
Suppose Freddy's Ltd. holds a loan receivable from a client. At the end of September, $75 of interest revenue has been earned but not received. Prepare the adjusting entry at September 30. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Sep. 30
11-19 (similar to) Question Help Dante's Mexican Restaurant incurred salaries expense of $58,000 for 2018. The...
11-19 (similar to) Question Help Dante's Mexican Restaurant incurred salaries expense of $58,000 for 2018. The payroll expense includes employer FICA tax in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $15,00D is subject to unemployment tax. Also, the compar pro des he follo lng ene s or emplo ees health nsurance co o lhe company 300·ife insurance co to he campany 420 and e rement ene seos to the compar 9 % a sal...
On August 1, 2019, The Cove at Mill Lake, Inc., purchased inventory costing $50,000 by signing...
On August 1, 2019, The Cove at Mill Lake, Inc., purchased inventory costing $50,000 by signing a 6%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit 2019 Aug 1 Requirement 2. Make the adjusting entry for accrual of interest on the note...
I have answered majority of the questions (please correct me if
I am wrong) but I just need help on requirement 5 please!
Lenny Worthington is general manager of United Salons. During 2018, Worthington worked for the company all year at a $13,200 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Worthington's federal income tax withheld during 2018 was $1.980 per month, plus United incurred payroll tax expense on Worthington for FICA tax....
Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $3,000), life insurance (cost to the company, $330), and retirement benefits (cost to the company, 10% of salaries expense). 6(Click the icon to view payroll tax rate information.)...
Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $410,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld Health insurance premiums (Blue Cross) paid by employer Contribution to retirement plan (Fidelity) paid by employer FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate $126,000 12,100 51,000 7.65% 6.20% Assume that Kashi has paid...
Exercise 9-7 Payroll-related journal entries LO P3 BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Gross Pay through August $ 6,560 Gross Pay for September $ 820 a. Prepare the employer's September 30 journal entries to record the employer's payroll...
Suppose Freddy's Ltd. holds a loan receivable from a client. At the end of September, $75 of interest revenue has been earned but not received. Prepare the adjusting entry at September 30. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Sep. 30
11-19 (similar to) Question Help Dante's Mexican Restaurant incurred salaries expense of $58,000 for 2018. The payroll expense includes employer FICA tax in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $15,00D is subject to unemployment tax. Also, the compar pro des he follo lng ene s or emplo ees health nsurance co o lhe company 300·ife insurance co to he campany 420 and e rement ene seos to the compar 9 % a sal...
On August 1, 2019, The Cove at Mill Lake, Inc., purchased inventory costing $50,000 by signing a 6%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit 2019 Aug 1 Requirement 2. Make the adjusting entry for accrual of interest on the note...
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