Question

The Tusquittee Company is a retail company that began operations on October 1, 2018, when it incorporated in the state Folowing is the chart of accounts for The Tusquittee Company. As a new business, all beginning balances are $O 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. (Click the icon to view the transactions.) tov E (Click the icon to view the chart of accounts.) The Tusquittee Company completed the following transactions during the last quarter of 2018, its first year of operations a one-year warranty andClick Read the requirements. Balance Balance 1. In preparation for recording the transactions, prepare: $ 200,000 2,425 S 198,908 197,809 196,703 10/01/2018 11/1/2018200,000 $ 12/1/2018 01/01/2019 An amortization schedule for the first 3 months of the mortgage payable issued on October 1 Round interest calculations to the nearest dollar a. 1,092 $ 1,099 1,106 1,333 $ 1,326 1,319 198,908 2,425 2,425 b. Payroll registers for October, November, and December. All employees worked October 1 through December 31 and are subject to the following FICA taxes: OASDI: 6.2% on first $1 18,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Additional payroll information includes: 197,809 Requirement 1b. In preparation for recording the transactions, prepare: Payroll registers for October, November, and December. All on first $1 18,500 earned: Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Monthly Federal Health Salary Income Tax Insurance Begin by preparing the payroll register for October. (Round all amounts to the nearest cent. Complete all answer boxes. Enter a "O" for a Medicare; Ins.-Insurance; With. Withholdings.) Employee 1,800 $ S 6,000 $ Kate Jones Mary Smith Shermy Martin OASDI: 6.2% on first $118,500 eared; Medicare: 1.45%; SUTA: 5.4% on first $7,000 earned; 300 300 300 Earnings Withholdings 5,000 1,000 Ending 3,000 Total Period Health Net c. Calculations for employer payroll taxes liabilities for October, November, and December Employee Ern. Earnings Earn. OASDI Med. With. Pa FUTA: 0.6% on first $7,000 eared. 2. Record the transactions in the general journal. Omit explanations. 3. Post to the general ledger. 4. Record adjusting entries for the three month period ended December 31, 2018: Smith Depreciation on the Building, straight-line, 40 years, no residual value. Depreciation on Store Fixtures, straight-line, 20 years, no residual value. Accrued interest expense on the note payable for the store fixtures. Accrued interest expense on the mortgage payable. Accrued income tax expense of $36,000 tadiustinn entries and nrenArA an adiusted trial a. b. c. d. e. nter any number in the edit fields and then click Check Answer.

Answer 1

a) Amortisation schedule for Mrotagege Month Loan Amt Os Instalment It Prinicipal Paid 1-Oct-18 31-Oct-18 30-Nov-18 31-Dec-18 200,000.00 198,908.00$2,425.00$ 1,333.00$1,092.00 197,809.00$2,425.00$ 1,326.00$1,099.00 196,703.00$2,425.00$ 1,319.00$1,106.00 b) Paroll Register for Nov and Mary Smith Sherry Mart Name Salry Monthly Income Tax Health Insurance OASDI (6.2% Medicare (1.45% Net Payable Kete Jones Total $6,000.00$5,000.00$3,000.00$14,000.00 3,250.00 900.00 868.00 203.00 8,779.00 1,800.00 300.00 372.00 87.00 3,441.00 1,000.00 300.00 310.00 72.50 3,317.50 450.00 300.00 186.00 43.50 2,020.50 c) Paroll tax Liabilities for Oct, Nov and Oct-18 Nov-18 Dec-18 $3,250.00 900.00 1071.00 1071.00 756.00 84.00 $3,250.00 $3,250.00 900.00 1071.00 1071.00 756.00 84.00 Income Tax Health Insurance FUTA (OASDI+Medicare) - Employee FUTA (OASDI+Medicare) - Employer SUTA (5.4%)-Empoyer FUTA (0.6%)-Empoyer 900.00 1071.00 1071.00 756.00 84.00