Problem

For each of the following independent situations, indicate the adjusting entry that must b...

For each of the following independent situations, indicate the adjusting entry that must be made on the December 31, 2013, worksheet. Omit descriptions.

a. During the year 2013, Sam & Sons Company had net credit sales of $941,000. Past experience shows that 0.6 percent of the firm’s net credit sales result in uncollectible accounts.

b. Equipment purchased by One Stop Shops for $29,355 on January 2, 2013, has an estimated useful life of nine years and an estimated salvage value of $1,743. What adjustment for depreciation should be recorded on the firm’s worksheet for the year ended December 31, 2013?

c. On December 31, 2013, Parrish Plumbing Supply owed wages of $6,546 to its factory employees, who are paid weekly.

d. On December 31, 2013, Parrish Plumbing Supply owed the employer’s social security (6.2%) and Medicare (1.45%) taxes on the entire $6,546 of accrued wages for its factory employees.

e. On December 31, 2013, Parrish Plumbing Supply owed federal (0.8%) and state (5.4%) unemployment taxes on the entire $6,546 of accrued wages for its factory employees.

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