Question

PLEASE HELP....Read the information carefully & (h. Interest expenses) is part on the assignment.

Mastery Problem: Liabilities: Bonds Payable SpringFit Corporation You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous year's journal entries, shown as follows: Journal Entries, Year 1 Journal Description Date Debit 1,008,960 Credit Jan. 1 Cash Premium on Bonds Payable Bonds Payable 58,960 950,000 Jun. 30 Interest Expense Premium on Bonds Payable Cash 18,427 2,948 21,375 Jul. 1 Cash Discount on Bonds Payable Bonds Payable 1,921,280 78,720 2,000,000 Interest Expense Premium on Bonds Payable Cash Dec. 31 18,427 2,948 21,375 Interest Expense Discount on Bonds Payable Cash 31 41,560 6,560 35,000 Retained Earnings Interest Expense 31 78,414 78,414 Bonds Payable Review the journal entries on the SpringFit Corporation panel, then answer the following questions. 1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2. Which entry onds issued at a contract rate lower than the market rate of interest? Choose the date. 3. How much interest was paid during the year on the bonds in question (2)? 4. What is the carrying amount of the bonds in question (2) at the end of the year? 5. Which entry shows bonds that sold for more than their face amount? Choose the date. 6. How much interest was paid during the year on the bonds in question (5)? 7. Assuming that straight-line amortization is used for the bonds in question (5), what is the bond life? 8. What is the carrying value of the bonds in question (5) at the end of the year?

Calculate Payroll

K. Mello 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 $2,110 per week $36 per hour $46 per hour

Overtime earnings rate Not applicable 2 times hourly rate 1.5 times hourly rate

Federal income tax withheld $925 $246 $515

For hourly employees, overtime is paid for hours worked in excess of 40 hours per week.

For the current pay period, the computer programmer worked 54 hours and the administrator worked 64 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5%.

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

Mastery Problem: Liabilities : Bonds Payable

1. Two different bonds payable.

2. July 1.

3. $ 35,000

4. $ 1,927,840

5. Jan 1.

6. $ 42,750.

7. 10 years.

8. $ 1,003,064

Journal entries, Year 2 :

1. No. 50% of the bonds payable were redeemed before maturity.