help Problem #5 Current LiabilitiesSink, Inc. had several employees working for the company. The mainproduct line was different types of Diapers that people used to cover theirfaces during any type of flu outbreak. The following information wasprovided to you regarding the most recent payroll:Gross wages were $400,000Medical Insurance was $35,000 in total with the employee paying 30% andthe employer paying 70%.Federal Income taxes were $40,000State Income taxes were $25,000Social Security withheld was $15,000 in total.Medicare withheld was $7,000 in totalAP totaled $34,000 at this point in time.The employees had a Christmas fund deducted from their pay. This was$5,000 in totalFederal Unemployment tax was .5% with a limit of $300,000State Unemployment tax was 5.4% with a limit of $300,000Required: Make the entries for the employee and employer portion of thepayroll expenses.

Date Particulars Debit Credit April Salaries Expense Federal income tax with held payable…

Sink, Inc. had several employees working for the company. The main product line was different types of Diapers that people used to cover their faces during any type of flu outbreak. The following information was provided to you regarding the most recent payroll: Gross wages were $400,000 Medical Insurance was $35,000 in total with the employee paying 30% and

Sink, Inc. had several employees working for the company. The main product line was different types of Diapers that people used to cover their faces during any type of flu outbreak. The following information was provided to you regarding the most recent payroll: Gross wages were $400,000 Medical Insurance was $35,000 in total with the employee paying 30% and

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 10.1EX: Current liabilities Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn for 85 during December...

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subject:accounting The Green Company building was valued at $220,000. The building was insured for $100,000 at a premium rate of $5.60 per thousand. The policy contained an 80% coinsurance clause. A small fire caused damages costing $35,200 to repair. Later in the year, another fire caused damages costing $105,600 to repair. How much more did the insurance company pay for repairs for fire damage for Green Company during the year than it earned in premiums from the Green Company for the year?
Current liabilities Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn for 85 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of 840,000 during the first calendar quarter of 20Y6. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the current liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y6.
Recording Various Liabilities Plymouth Electronics had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $80,000. ( Note: Assume a periodic inventory system.) Year-end wages of $40,000 were incurred, but not paid. Related federal income taxes of $13,000 and Medicare taxes of $580 were withheld. Employee wages are all above the Social Security maximum, so only Medicare was paid. b. Year-end estimated income taxes payable, but unpaid, for the year were $113,615. c. Sold merchandise on account for $3,636, including state sales taxes of $180. ( Note: Assume a periodic inventory system.) d. Employers share of Medicare taxes for the period was $580. The taxes will be paid at a later date. e. Borrowed cash under a 180-day, 8%, $155,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).
23. Below are DCI & Co.’s transactions for the third quarter:· Payment of quick response insurance premium for calendar year (payment was made during the 1st quarter)- P400,000· Loss from earthquake- P980,000· Writedown of inventories (loss in P/L)- P720,000How much is the total expense for the third quarter?
Problem 27 On January 1, 2022, De Vera Company loaned Dagpin Company amounting to P2,000,000 and received a two-year, 6%, P2,000,000 note. The note calls for annual interest to be paid each December 31. De Vera collected the 2022 interest on schedule. However, on December 31, 2023, based on the Dagpin’s recent financial difficulties, De Vera expects that the 2023 interest, which was recorded in the books, will not be collected and that only P1,200,000 of the principal will be recovered. The P1,200,000 principal amount is expected to be collected in two equal installments on December 31, 2025 and December 31, 2027. The prevailing interest rate for similar type of note as of December 31, 2023 is 8%. What is the loan impairment loss to be recognized for the year 2023 How much is the interest income for the year 2025? The carrying amount of the loan as of December 31, 2026 is:
Knowledge Check 01Annually, Monet Corp. awards each of its employees two weeks of paid vacation, which can be carried over if not used. As of December 31, Year 1, the company determined that there are 20 vacation weeks eligible for carryover. During Year 1, compensation averaged $1,000 per week. That average compensation amount is expected to increase to $1,030 during Year 2 when that vacation time will be taken. What is the liability that should be reported for vacation pay in the company’s balance sheet prepared as of December 31, Year 1?
H9.C2 Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0,6% and SUTA taxes are 5.4%. The company Is preparing its payroll calculations for the week ended August 25. Payroll records show the following Information for the company's four employees. Name Dali Trey Kiesha Chee Gross Pay through August 18 Dali: $ 136,600 Trey: 136,800 Kiesha: 6,900 Chee: 1,250 gross Pav Dali: $ 2,000 Trey: 900 Kiesha: 450 Chee: 400 Current Week Income Tax Withholding Dali: $284 Trey: 145 Kiesha: 39 Chee: 30 In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remalning one-third. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: places.) Compute the following for the…
Journalize the following transactions for Howard Company: Dec. 31 The accrued product warranty expense for the year is estimated to be 2.5% of sales. Sales for the year totaled $6,005,000. 31 The accrued vacation pay for the year is estimated to be $77,225. 31 Paid Reliable Insurance Co. $275,000 as fund trustee for the pension plan. The annual pension cost is $340,000. Please don't provide answer in image format thank you
33) Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January? A) $612. B) $1,224. C) $916. D) $304. 34) Amplify, Inc. was sued by Sound City for $50,000. Sound City feels very confident that it will win the case and will be awarded the full amount. Amplify, Inc. feels it is probable that it will lose the case and pay Sound City the full amount. Which of the following is correct? A) Amplify, Inc. would record a loss and contingent liability for $50,000, Sound City would record a gain and lawsuit receivable for $50,000. B) Sound City would record a gain and lawsuit receivable for $50,000, Amplify would record nothing. C) Sound City would record nothing, Amplify would record nothing. D) Amplify, Inc. would record a…
Question 2 Baby Boomers, Ltd.. had gross sales of $4,000,000 on credit during the year 2021. Sales returns and allowances in 2021 were $320,000 and trade discounts given to customers were $80,000.During 2021, the company also collected $3,200,000 in cash from credit sales. The company uses the allowance method for bad debts, and at the end of 2021, the CFO of the company estimates that 1% of total credit sales will never be collectible. Few months later, in April 2022 a customer confirms to the company that he will never pay $8,000.Required:a) Prepare detailed presentation of the revenue section of the income statement for the the year 2021. b) Show the journal entries for the years 2021 and 2022.
62. A hospitality company is the maker of an $18,000 note to be paid in quarterlyinstallments of $3,000 each. The first payment is to be made on June 30. How willthe note be represented on the balance sheet for May 31?A. $18,000 long-term liabilityB. $3,000 expense, $15,000 long-term liabilityC. $3,000 expense, $9,000 current liability, $6,000 long-term liabilityD. $12,000 current liability, $6,000 long-term liability
Problem 8-74APayroll Accounting Jet Enterprises has the following data available for its April 30, 2019, payroll: Wages earned $485,000 * Federal income taxes withheld 92,300 * All subject to Social Security and Medicare matching and withholding of 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.70% and state unemployment taxes of 0.90% are payable on $405,700 of the wages earned. Required: If required, round your answers to the nearest cent. 1. Compute the amounts of taxes payable and the amount of wages that will be paid to employees. Enter amounts as positive numbers. Social Security $fill in the blank a1cdad04ff8d01d_1 Medicare $fill in the blank a1cdad04ff8d01d_2 Federal unemployment $fill in the blank a1cdad04ff8d01d_3 State unemployment $fill in the blank a1cdad04ff8d01d_4 Net pay $fill in the blank a1cdad04ff8d01d_5 Prepare the journal entries to record the wages earned and the payroll taxes. If an amount box does not…