Accounting

Accrued vacation pay 1. Obj. 4 A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year’s vacation pay is $54,000. 1. Journalize the adjusting entry required on January 31, the end of the first month of the current year, to […]

Internal control procedures 1. Obj. 3 Dave’s Scooters is a small manufacturer of specialty scooters. The company employs 14 production workers and four administrative persons. The following procedures are used to process the company’s weekly payroll: 1. Whenever an employee receives a pay raise, the supervisor must fill out a wage adjustment form, which is

Payroll internal control procedures 1. Obj. 3 Big Howie’s Hot Dog Stand is a fast-food restaurant specializing in hot dogs and hamburgers. The store employs 8 full-time and 12 part-time workers. The store’s weekly payroll averages $5,600 for all 20 workers. Big Howie’s Hot Dog Stand uses a personal computer to assist in preparing paychecks.

the receipt of the payment of the note at maturity. Summary payroll data 1. Obj. 2, 3 In the following summary of data for a payroll period, some amounts have been intentionally omitted:   1. Calculate the amounts omitted in lines (1), (3), (8), and (12). Answer Check Figure: Total earnings, $540,000 2. Journalize the entry to

Calculate the amount of the interest expense for each option. Calculate payroll 1. Obj. 2 An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was

Current portion of long-term debt 1. Obj. 1 PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions):   1. How much of the long-term debt was disclosed as a current liability on the current year’s December 31 balance sheet? 2. How much did the

Entries for notes payable 1. Obj. 1 A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. EX 11-6 Entries for discounted note payable 1. Obj. 1 A business issued

Entries for discounting notes payable 1. Obj. 1 Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%. 1. Journalize Ramsey’s entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 2. Journalize Buckner’s entries to record: 1. the

Entries for notes payable 1. Obj. 1 Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory. 1. Journalize Cosimo Enterprises’ entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 2. Journalize Dixon Industries’ entries to record: 1. the receipt of the note.

Current liabilities 1. Obj. 1 Bon Nebo Co. sold 25,000 annual subscriptions of Magazine 20XX for $85 during December 20Y8. These new subscribers will receive monthly issues, beginning in January 20Y9. In addition, the business had taxable income of $840,000 during the first calendar quarter of 20Y9. The federal tax rate is 40%. A quarterly tax payment