Question

> Problems Group A P11-25A Journalizing and posting liabilities The general ledger of Seal-N-Ship at June 30, 2018, the end of the company's fiscal year, includes the following account balances before payroll and adjusting entries. Accounts Payable $ 114,000 Interest Payable 0 Salaries Payable Employee Income Taxes Payable FICA-OASDI Taxes Payable 0 I 0 FICA-Medicare Taxes Payable 0 Federal Unemployment Taxes Payable 0 State Unemployment Taxes Payable 0 Unearned Rent Revenue 7,200 Long-term Notes Payable 210,000 The additional data needed to develop the payroll and adjusting entries at June 30 are as follows: a. The long-term debt is payable in annual installments of $42,000, with the next installment due on July 31. On that date, Scal-N-Ship will also pay one year's inter est 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 $910 and that all carnings are subject to OASDI. c. Record the associated employer taxes payable for the last payroll of the fiscal year, $4,700. Assume that the carnings are not subject to unemployment compensation taxes d. On February 1, the company collected one year's rent of $7,200 in advance.

Answer 1

ANSWER

Date DR Accounts Payable Date $ 114,000.00 Bal. CR Date DR Interest Payable CR Date Bal. $ 18,900.00 a 0 $ 18,900.00 $ 18,900.00 End.Bal. 0 $ 114,000.00 $ 114,000.00 End.Bal. Date DR Date $ Salaries payable CR Date Bal. $ 3,430.00b - $ 3,430.00 $ 3,430.00 End.Bal. Employee income tax payable DR Date - Bal. $ 910.00 b - $ 910.00 $ 910.00 End.Bal. FICA - Medicare tax payable DR CR Date Date DR Date $ Bal. FICA - OASDI payable CR Date Bal. $ 291.00 $ 291.00 - $ 582.00 $ 582.00 End.Bal. $ $ $ $ 69.00 b 69.00 138.00 138.00 End.Bal. - Federal Unemployment Taxes Payable Date DR Date Bal. June.30 State Unemployment Taxes Payable Date DR DR CR Date Bal. June.30 - $ $ - End.Bal. Date Unearned Revenue DR Date $ 3,000.00 $ 7,200.00 Bal. TOR Date Long-Term Note Payable DR CR Date $ 210,000.00 Bal. $ 3,000.00 $ - $ $ 7,200.00 4,200.00 End.Bal. $ 210,000.00 $ 210,000.00 End.Bal.

Ref CR DR $ 18,900.00 $ 18,900.00 $ 4,700.00 Particulars Interest Expense Interest Payable (Interest on long-term note @9% recorded) Salaries Expense FICA - OASDI payable FICA - Medicare payable Employee Income Tax Payable Salaries Payable (Accrued and unpaid salaries recorded) Payroll Expenses FICA - OASDI payable FICA - Medicare payable Unearned Revenue Rent Revenue (Rent revenue from Feb. To June recorded) $ $ $ $ 291.00 69.00 910.00 3,430.00 $ 360.00 $ | $ 291.00 69.00 $ 3,000.00 $ 3,000.00 Current Liabilities Accounts Payable Interest Payable Salaries payable Employee income taxes payable FICA - OASDI payable FICA - Medicare Tax Payable Unearned Revenue Current portion of long-term note payable Total Current Liabilities $ 14,000.00 $ 18,900.00 $ 3,430.00 $ 910.00 $ 582.00 $ 138.00 $ 4,200.00 $42,000.00 $ 84,160.00

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