The Tusquittee CompanyChart of AccountsCashDividends Payable-CommonMerchandise InventoryNotes PayableLandMortgages PayableBuildingCommon Stock-$1 Par ValueStore FixturesPaid-in Capital in Excess of ParCommonAccumulated DepreciationPaid-In Capital from Treasury Stock TransactionsAccounts PayableRetained EarningsEmployee Income Taxes PayableTreasury Stock-CommonFICA-OASDI Taxes PayableCash DividendsFICA-Medicare Taxes PayableSales RevenueEmployee Health Insurance PayableCost of Goods SoldFederal Unemployment Taxes PayableSalaries ExpenseState Unemployment Taxes PayablePayroll Tax ExpenseIncome Tax PayableUtilities ExpenseSales Tax PayableDepreciation ExpenseEstimated Warranty PayableWarranty ExpenseInterest PayableIncome Tax ExpenseInterest ExpenseThe Tusquittee Company completed the following transactions during the lastquarter of 2018, its first year of operations:Oct. 1Issued 25,000 shares of $1 par value common stock for cash of $10pershare.Issued a $200,000, 10-year, 8% mortgage payable for land with an existingstore building. Mortgage payments of $2,425 are due on the first day of eachmonth, beginning November 1. The assets had the following market values:Land, $40,000; Building, $160,000.Issued a one-year, 10% note payable for $10,000 for store fixtures. Theprincipal and interest are due October 1, 2019.Purchased merchandise inventory on account from Top Rate for $125,000,terms n/30.15Paid $160 for utilities.Recorded cash sales for the month of $185,000 plus sales tax of 6%. The cost ofthe goods sold was $110,000 and estimated warranty payable was 8%.3131Recorded October payroll and paid employees.31Accrued employer payroll taxes for October.Nov. 1Paid the first mortgage payment.3Paid Top Rate for the merchandise inventory purchased on October 3.Purchased merchandise inventory on account from Top Rate for $150,000,terms n/30.12Purchased 500 shares of treasury stock for $15 per share.15Paid all liabilities associated with the October 31 payroll.15Remitted (paid) sales tax from October sales to the state of North Carolina. 16Paid $6,000 to satisfy warranty claims.Declared cash dividends of $1 per outstanding share of common stock.Paid $245 for utilities.171827Paid the cash dividends.Recorded cash sales for the month of $140,000 plus sales tax of 6%. The cost ofthe goods sold was $84,000 and estimated warranty payable was 8%.30 Recorded November payroll and paid employees.Accrued employer payroll taxes for November.Dec. 1Paid the second mortgage payment.Paid Top Rate for the merchandise inventory purchased on November 10.O1L12Paid $7,500 to satisfy warranty claims.15Sold 300 shares of treasury stock for $20pershare.15Paid all liabilities associated with the November 30 payroll.15Remitted (paid) sales tax from November sales to the state of North Carolina.18Paid $220 for utilities.6Purchased merchandise inventory on account from Top Rate for $90,000,terms n/30.Recorded cash sales for the month of $210,000 plus sales tax of 6%. The cost of31the goods sold was $126,000 and estimated warranty payable was 8%.31Recorded December payroll and paid employees.31Accrued employer payroll taxes for December.Requirements1. In preparation for recording the transactions, prepare:a. An amortization schedule for the first 3 months of the mortgage payable issuedon October 1. Round interest calculations to the nearest dollar.b. Payroll registers for October, November, and December. All employees workedOctober 1 through December 31 and are subject to the following FICA taxes:OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%on earnings above $200,000. Additional payroll information includes:to $200,000, 2.35%dnMonthlySalaryFederalHealthEmployeeIncome TaxInsuranceKate Jones$ 6,000$ 1,800$ 300000L450Mary Smith000'008Sherry Martin000000€c. Calculations for employer payroll taxes liabilities for October, November, andDecember: OASDI: 6.2 % on first $118,500 earned; Medicare: 1.45%; SUTA:5.4% on first $7,000 earned; FUTA: 0.6% on first $7,000 earned2. Record the transactions in the general journal. Omit explanations.3. Post to the general ledger.Record adjusting entries for the three month period ended December 31, 2018:a. Depreciation on the Building, straight-line, 40 years, no residual value.b. Store Fixtures, straight-line, 20 years, no residual value.c. Accrued interest expense on the note payable for the store fixtures.

Question
Asked Nov 26, 2019
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The Tusquittee company is a retail company that began operating on October 1, 2018, when it incorporated in the state of North Carolina. The Tusquitte Company is authorized to issue 100,000 shares of $1 par value common stock and 50,000 shares of 5 %, $50 par value preferred stock. The Company sells a product that includes a one year warranty and records estimated warranty payable each month. Customers are charged a 6 % state sale tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month.

Following is the chart of accounts for The Tusquittee Company. As a new business, all beginning balances are $0

Can I get some help for numbers 1, 2, 3, and 4? Thank you

The Tusquittee Company
Chart of Accounts
Cash
Dividends Payable-Common
Merchandise Inventory
Notes Payable
Land
Mortgages Payable
Building
Common Stock-$1 Par Value
Store Fixtures
Paid-in Capital in Excess of ParCommon
Accumulated Depreciation
Paid-In Capital from Treasury Stock Transactions
Accounts Payable
Retained Earnings
Employee Income Taxes Payable
Treasury Stock-Common
FICA-OASDI Taxes Payable
Cash Dividends
FICA-Medicare Taxes Payable
Sales Revenue
Employee Health Insurance Payable
Cost of Goods Sold
Federal Unemployment Taxes Payable
Salaries Expense
State Unemployment Taxes Payable
Payroll Tax Expense
Income Tax Payable
Utilities Expense
Sales Tax Payable
Depreciation Expense
Estimated Warranty Payable
Warranty Expense
Interest Payable
Income Tax Expense
Interest Expense
The Tusquittee Company completed the following transactions during the last
quarter of 2018, its first year of operations:
Oct. 1
Issued 25,000 shares of $1 par value common stock for cash of $10
per
share.
Issued a $200,000, 10-year, 8% mortgage payable for land with an existing
store building. Mortgage payments of $2,425 are due on the first day of each
month, beginning November 1. The assets had the following market values:
Land, $40,000; Building, $160,000.
Issued a one-year, 10% note payable for $10,000 for store fixtures. The
principal and interest are due October 1, 2019.
Purchased merchandise inventory on account from Top Rate for $125,000,
terms n/30.
15
Paid $160 for utilities.
Recorded cash sales for the month of $185,000 plus sales tax of 6%. The cost of
the goods sold was $110,000 and estimated warranty payable was 8%.
31
31
Recorded October payroll and paid employees.
31
Accrued employer payroll taxes for October.
Nov. 1
Paid the first mortgage payment.
3
Paid Top Rate for the merchandise inventory purchased on October 3.
Purchased merchandise inventory on account from Top Rate for $150,000,
terms n/30.
12
Purchased 500 shares of treasury stock for $15 per share.
15
Paid all liabilities associated with the October 31 payroll.
15
Remitted (paid) sales tax from October sales to the state of North Carolina.
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The Tusquittee Company Chart of Accounts Cash Dividends Payable-Common Merchandise Inventory Notes Payable Land Mortgages Payable Building Common Stock-$1 Par Value Store Fixtures Paid-in Capital in Excess of ParCommon Accumulated Depreciation Paid-In Capital from Treasury Stock Transactions Accounts Payable Retained Earnings Employee Income Taxes Payable Treasury Stock-Common FICA-OASDI Taxes Payable Cash Dividends FICA-Medicare Taxes Payable Sales Revenue Employee Health Insurance Payable Cost of Goods Sold Federal Unemployment Taxes Payable Salaries Expense State Unemployment Taxes Payable Payroll Tax Expense Income Tax Payable Utilities Expense Sales Tax Payable Depreciation Expense Estimated Warranty Payable Warranty Expense Interest Payable Income Tax Expense Interest Expense The Tusquittee Company completed the following transactions during the last quarter of 2018, its first year of operations: Oct. 1 Issued 25,000 shares of $1 par value common stock for cash of $10 per share. Issued a $200,000, 10-year, 8% mortgage payable for land with an existing store building. Mortgage payments of $2,425 are due on the first day of each month, beginning November 1. The assets had the following market values: Land, $40,000; Building, $160,000. Issued a one-year, 10% note payable for $10,000 for store fixtures. The principal and interest are due October 1, 2019. Purchased merchandise inventory on account from Top Rate for $125,000, terms n/30. 15 Paid $160 for utilities. Recorded cash sales for the month of $185,000 plus sales tax of 6%. The cost of the goods sold was $110,000 and estimated warranty payable was 8%. 31 31 Recorded October payroll and paid employees. 31 Accrued employer payroll taxes for October. Nov. 1 Paid the first mortgage payment. 3 Paid Top Rate for the merchandise inventory purchased on October 3. Purchased merchandise inventory on account from Top Rate for $150,000, terms n/30. 12 Purchased 500 shares of treasury stock for $15 per share. 15 Paid all liabilities associated with the October 31 payroll. 15 Remitted (paid) sales tax from October sales to the state of North Carolina.

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16
Paid $6,000 to satisfy warranty claims.
Declared cash dividends of $1 per outstanding share of common stock.
Paid $245 for utilities.
17
18
27
Paid the cash dividends.
Recorded cash sales for the month of $140,000 plus sales tax of 6%. The cost of
the goods sold was $84,000 and estimated warranty payable was 8%.
30 Recorded November payroll and paid employees.
Accrued employer payroll taxes for November.
Dec. 1
Paid the second mortgage payment.
Paid Top Rate for the merchandise inventory purchased on November 10.
O1L
12
Paid $7,500 to satisfy warranty claims.
15
Sold 300 shares of treasury stock for $20
per
share.
15
Paid all liabilities associated with the November 30 payroll.
15
Remitted (paid) sales tax from November sales to the state of North Carolina.
18
Paid $220 for utilities.
6
Purchased merchandise inventory on account from Top Rate for $90,000,
terms n/30.
Recorded cash sales for the month of $210,000 plus sales tax of 6%. The cost of
31
the goods sold was $126,000 and estimated warranty payable was 8%.
31
Recorded December payroll and paid employees.
31
Accrued employer payroll taxes for December.
Requirements
1. In preparation for recording the transactions, prepare:
a. An amortization schedule for the first 3 months of the mortgage payable issued
on October 1. Round interest calculations to the nearest dollar.
b. Payroll registers for October, November, and December. All employees worked
October 1 through December 31 and are subject to the following FICA taxes:
OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%
on earnings above $200,000. Additional payroll information includes:
to $200,000, 2.35%
dn
Monthly
Salary
Federal
Health
Employee
Income Tax
Insurance
Kate Jones
$ 6,000
$ 1,800
$ 300
000L
450
Mary Smith
000'
008
Sherry Martin
0000
00€
c. Calculations for employer payroll taxes liabilities for October, November, and
December: OASDI: 6.2 % on first $118,500 earned; Medicare: 1.45%; SUTA:
5.4% on first $7,000 earned; FUTA: 0.6% on first $7,000 earned
2. Record the transactions in the general journal. Omit explanations.
3. Post to the general ledger.
Record adjusting entries for the three month period ended December 31, 2018:
a. Depreciation on the Building, straight-line, 40 years, no residual value.
b. Store Fixtures, straight-line, 20 years, no residual value.
c. Accrued interest expense on the note payable for the store fixtures.
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16 Paid $6,000 to satisfy warranty claims. Declared cash dividends of $1 per outstanding share of common stock. Paid $245 for utilities. 17 18 27 Paid the cash dividends. Recorded cash sales for the month of $140,000 plus sales tax of 6%. The cost of the goods sold was $84,000 and estimated warranty payable was 8%. 30 Recorded November payroll and paid employees. Accrued employer payroll taxes for November. Dec. 1 Paid the second mortgage payment. Paid Top Rate for the merchandise inventory purchased on November 10. O1L 12 Paid $7,500 to satisfy warranty claims. 15 Sold 300 shares of treasury stock for $20 per share. 15 Paid all liabilities associated with the November 30 payroll. 15 Remitted (paid) sales tax from November sales to the state of North Carolina. 18 Paid $220 for utilities. 6 Purchased merchandise inventory on account from Top Rate for $90,000, terms n/30. Recorded cash sales for the month of $210,000 plus sales tax of 6%. The cost of 31 the goods sold was $126,000 and estimated warranty payable was 8%. 31 Recorded December payroll and paid employees. 31 Accrued employer payroll taxes for December. Requirements 1. In preparation for recording the transactions, prepare: a. An amortization schedule for the first 3 months of the mortgage payable issued on October 1. Round interest calculations to the nearest dollar. b. Payroll registers for October, November, and December. All employees worked October 1 through December 31 and are subject to the following FICA taxes: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on earnings above $200,000. Additional payroll information includes: to $200,000, 2.35% dn Monthly Salary Federal Health Employee Income Tax Insurance Kate Jones $ 6,000 $ 1,800 $ 300 000L 450 Mary Smith 000' 008 Sherry Martin 0000 00€ c. Calculations for employer payroll taxes liabilities for October, November, and December: OASDI: 6.2 % on first $118,500 earned; Medicare: 1.45%; SUTA: 5.4% on first $7,000 earned; FUTA: 0.6% on first $7,000 earned 2. Record the transactions in the general journal. Omit explanations. 3. Post to the general ledger. Record adjusting entries for the three month period ended December 31, 2018: a. Depreciation on the Building, straight-line, 40 years, no residual value. b. Store Fixtures, straight-line, 20 years, no residual value. c. Accrued interest expense on the note payable for the store fixtures.

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Expert Answer

Step 1

Since you have asked multiple question, we will solve the first question for you ( which has three sub-parts). If you want any specific question to be solved then please specify the question number or post only that question.

1. ) a. Amortization schedule required is attached. Please refer the same.  (all numbers are in $)

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Amortization schedule 1/10/2018 to 31/12 2018 Mortgage loan amount= 200000 10 yrs Tenure= 8% Interest % annually= Total Payment Interest payment Principal payment o/S Balance at month end Date 01-10-2018 01-11-2018 01-12-2018 200000 1333 1326 1092 1099 198908 2425 2425 197809 Workings: Calculation of interest= o/s Balance x annual interest rate/ 12 mnths for 1/11/2018 200000 x 8%/ 12mnths= $1333 For 1/12/2018 198908 x 8%/12mnths= $1326 Calculation of principal payment- Payments made at each month-interest payment for 1/11/2018 2425- 1333= 1092 For 1/12/2018 = 2425- 1326=1099 O/s balance Closing balance of previous month- Prinicipal payment made in current month For 1/10/2018 200000-0= 200000 for 1/11/2018 =200000- 1092=198908 For 1/12/2018 198908-1099=197809

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Step 2

1.) b. Employee wise payroll details attached. ( all amnts in $).

Please note the following- the overall yearly salaries of all the three emloyees are within the threshold for OASDI & Medicare.

Payroll details summation attached in following step

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Payroll Employee wise Net montly salary excluding Health insurance Health insurance OASDI 6.2 % Medicare @1.45 % Net payroll Kate Jones Monthly salaries (S) Federal income tax Oct 6000 1800 300 5700 353.4 82.65 3463.95 6000 3463.95 Nov 1800 300 5700 353.4 82.65 Dec 6000 1800 300 5700 353.4 82.65 3463.95 Net montly salary excluding Health insurance Health insurance OASDI 6.2 % Medicare 1.45 % Net payroll Monthly salaries ($) Federal income tax Mary Smith 68.15 Oct 5000 1000 300 4700 291.4 3340.45 5000 3340.45 Nov 1000 300 4700 291.4 68.15 Dec 5000 1000 300 4700 291.4 68.15 3340.45 Net montly salary excluding Health insurance Health insurance OASDI 6.2 % Medicare@ 1.45 % Net payroll Sherry Martin Monthly salaries (S) Federal income tax Oct 3000 167.4 450 300 2700 39.15 2043.45 2700 Nov 3000 450 300 167.4 39.15 2043.45 2700 39.15 Dec 3000 450 300 167.4 2043.45

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Step 3

1.) b. Summation of month...

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Payroll register for October, november, December October November December Monthly salaries 14000 14000 14000 Less: Health insurance 900 900 900 Less: federal income tax 3250 3250 3250 9850 Net 9850 9850 Less: OASDI: 812.2 812.2 812.2 Less: Medicare 189.95 189.95 189.95 Payroll for each month to be paid: 8847.85 8847.85 8847.85

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