Exercise 12.3 (Algo) Preparing adjustments for uncollectible accounts, depreciation, and payroll items. LO 12-2 a. During the year 20X1, Sampson Company had net credit sales of $990,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts. b. Equipment purchased by Park Consultancy for $28,220 on January 2, 20x1, has an estimated useful life of 8 years and an estimated salvage value of $2.700 What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 20X1? c. On December 31, 20x1, Giant Plumbing Supply owed wages of $5.700 to its factory employees, who are paid weekly d. On December 31, 20x1, Glarit Plumbing Supply owed the employer's social security (6.2 percent) and Medicare (145 percent) taxes on the entire $5700 of accrued wages for its factory employees. e. On December 31, 20X1, Giant Plumbing Supply owed federal (06 percent) and state (5.4 percent unemployment taxes on the entire $5,700 of accrued wages for its factory employees. For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 20X1, worksheet (Round your answers to 2 decimal places.)

Exercise 12.3 (Algo) Preparing adjustments for uncollectible accounts, depreciation, and payroll items. LO 12-2 a. During the year 20X1, Sampson Company had net credit sales of $990,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts. b. Equipment purchased by Park Consultancy for $28,220 on January 2, 20x1, has an estimated useful life of 8 years and an estimated salvage value of $2.700 What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 20X1? c. On December 31, 20x1, Giant Plumbing Supply owed wages of $5.700 to its factory employees, who are paid weekly d. On December 31, 20x1, Glarit Plumbing Supply owed the employer's social security (6.2 percent) and Medicare (145 percent) taxes on the entire $5700 of accrued wages for its factory employees. e. On December 31, 20X1, Giant Plumbing Supply owed federal (06 percent) and state (5.4 percent unemployment taxes on the entire $5,700 of accrued wages for its factory employees. For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 20X1, worksheet (Round your answers to 2 decimal places.)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 22E

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