Connect Chapter 11 HW - MGMT-026

award:

1. 10 out of 10.00

.............. points ?

On September 11, 20 12, Home Store sells a mower for $500 with a one-year warran~/ that covers parts. Warran~/ expense is estimated at 8% of sales. On July 24, 20 13, the mower is brought in for repairs covered under the warran~/ requiring $35 in materials taken from the Repair Parts Inventory.

Prepare the September 11, 20 12, entry to record the mower sale, and the July 24, 20 13, entry to record the warran~/ repairs. (Assume all sales are cash sales and Home store uses a periodic inventory system and estimated warranty expense is re corded at the time of the sale.}

Date Sep 11 , 20 14

Cash Sales

General Journal

Debit

Credit

./

500. /

./

500. /

Sep 11 , 20 14 Warranty expense Estimated warranty liability

Jul24,20 13 Estimated warranty liability Repair parts inventory

./

40. /

./

40. /

./

35. /

./

35. /

g.vard:

2.

10 out of 10.00

?? ? ? ? ? ? points ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? .. ?

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $11 0,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.

Gross Pay through August Gross Pay for September

a.

$ 6,400

$ 800

Prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $80 for this pay period. (Round your answers to 2 decimal p laces.)

Taxes to be withheld from gross pay (Employee-paid ta xes)

Federal income tax FICA-Social Security

September earnings subiectto tax

1

800 oo.;

Tax Rate

_ J$

6 20%.i

Tax Amount 80.00 49.60

FICA-Medicare

800 .oo. ;

1.45%. il

11 .60

Total ta xes withheld 1$

14 1.2 0

?~~~~~~~~---'

Date Sep. 30

-

General Journal Salaries expense

FICA- Social sec. taxes payable FICA- Medicare taxes payable Employee fed. inc. taxes payable Accrued payroll payable

Debit

Credit

"""" """"

800.00. ;j

49.60. i 11 60. i 80.00. i 658.80. i

-

eward:

3. 10 out of

..............1p0o.in00ts ...................................................... ..

Ticketsales, Inc., receives $5,000,000 cash in advance ticket sales for a four-Oate tour of Bon Jovi. Record the advance ticket sales on October 3 1. Record the revenue earned for the first concert date of November 5, assuming it represents one-fou rth of the advance ticket sales. (Assume the company has the policy of recording cash received in advance in the balance sheet account.)

Date Oc t. 3 1

Nov.5

General Journal

Cash Unearned ticket revenue

T

Unearned ticket revenue Earned ticket revenue

Debit

Credit

./ 5,000,000./

./

5,000,000. /

I

I

./ 1,250,000./

./

- 1,250,000. /

r tfiiiitiiiioiliili'i iii!iiriniioiiii iiiipiiiisio oiii iiuiis?&oiisiJisiJiariiifiiiiiOw

Keesha Co. borrows $200,000 cash on November 1, 20 13, by signing a 90-day, 9% note with a face value of $200,000.

sward:

4. 10 out of 10.00 ?????????????????????????????poinrs ?????????????????????????????????????????????????????????????????????????????????????????????????????????????

1. On what date does this note mature?

0 January 25, 20 14. January 26, 20 14. 0 January 27, 20 14. 0 January 28, 20 14. @January 30, 20 14.

award:

5. 20 out of

.....................p20o.i0n0ts .....................................................................................

2. & 3. What is the amount of interest expense in 20 13 and 20 14 from this note? (Use 360 days a year. Do not round intermediate cal'culations.)

Principal Rate (%) Time Total interest

Total through maturity

Interest

Expense

2013

Interest

Expense

2014

$ 200,000./ $

9%. /

90/360. /

$

4,500./ $

200,000./ $ 9%. /

60/360. / 3,000./ $

200,000. / 9%. /

30/360. / 1,500. /

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download