ACCT 1A Lecture Notes - Lecture 9: Financial Statement, Accounts Payable, Accrual

18 views3 pages

rosebuffalo981

16 Jul 2020

School

Irvine Valley College

Department

Accounting

Course

ACCT 1A

Professor

seilo

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

A line of credit allows a company to access credit on an as-needed basis up to a maximum amount set by the lender. Amounts owed for products o services purchased on credit are accounts payable. An accrued liability results from an expense the business has incurred but has not been billed for or paid. Therefore, an accrued expense creates a liability, which explains why it is also called an accrued expense. Salaries and wages payable is the liability for salaries, wages and related payroll expenses not yet paid at the end of the period. Interest payable is the company"s interest payable on notes, loans and bonds payable. Income taxes payable is the amount of income tax the company still owes at year-end. Short-term notes payable are notes payable due within one year. Sellers collect these taxes from customers, creating sales tax payable to the government levying the tax.

Related Questions

		debit	credit
100	Cash	54,339
110	Investment Securities--AFS	72,000
115	ACCRUED INTEREST RECEIVABLE	1000
130	Accounts Receivable	48,607
131	Allowance for Doubtful Accounts		3,022
132	Allowance for Sales Returns and Allowances		972
140	Merchandise Inventory	449,807
150	Prepaid Insurance	7,434
160	Store Supplies	2,700
170	Land	285,820
180	Building	476,895
181	Accumulated Depreciation: Building		55,027
182	Office & Store Equipment	163,941
183	Accumulated Depreciation: Office & Store Equipment		54,763
184	Delivery Trucks	198,545
185	Accumulated Depreciation: Delivery Trucks		41,260
200	Accounts Payable		51,274
210	FICA Taxes Payable		5,406
220	FEDERAL INCOME TAX WITHHOLDING PAYABLE		3,401
230	Unemployment Taxes Payable		814
240	Union Dues Payable		180
250	Salaries & Wages Payable		37,085
260	accured utility payable		506
280	Mortgage Payable		200,000
281	Accrued Interest Payable		667
300	Common Stock		100,000
301	PIC in Excess of Par		1,000,000
350	Retained Earnings		85,937
400	Sales		1,779,369
401	Sales Returns	36,893
402	Sales Discounts	12,027
490	INTEREST REVENUE		1,000
500	Purchases		0
501	Purchase Returns		0
502	Purchase Discounts		0
520	Freight In		0
550	cost of goods sold	1,157,524
600	Salaries & Wages Expense	304,693	0
605	Payroll Tax Expense	41,573	0
610	Advertising Expense	11,874	0
620	REPAIR EXPENSE	1,700	0
630	STORE SUPPLIES EXPENSE	10,021	0
640	Utilities Expense	20,410	0
650	INSURANCE EXPENSE	6,034	0
660	DEPRECIATION EXPENSE	46,459	0
670	DOUBTFUL ACCOUNTS EXPENSE	928	0
800	Interest Expense	9,459	0
	Totals	3,420,683	3,420,683

Prepare a balance sheet as of December 31, 2016.(Remember that part of the mortgage payable should be classified asa current liability and the remainder as a long termliability.)

fuchsiabee9

The expense account, Salaries Expense, has an unadjusted balanceof $151,000 on Thursday, December 31,2017.

The company operates five days a week with a daily payroll of$4,000. Employees are paid every Saturday for the workweek justcompleted (Monday through Friday). Determine the correct endingbalance in Salaries Payable and Salaries Expense after the correctadjusting entry is made at year end:

	A.	Salaries Payable SalariesExpense $4,000 $155,000
	B.	SalariesPayable SalariesExpense $4,000 $147,000
	C.	SalariesPayable SalariesExpense $16,000 $16,000
	D.	SalariesPayable SalariesExpense $16,000 $135,000
	E.	SalariesPayable SalariesExpense $16,000 $167,000

1 points

QUESTION 7

Answer the following statements as true or false, then selectthe correct multiple -choice answer:

1. If dividends are declared during the year thecompany would close the dividend account by debiting retainedearnings and crediting the dividend account.

2. A company that forgets to recognizedepreciation for the year understates its income and assets.

3. Prepaid insurance expense will havea zero balance on the after closing trial balance.

4. Retained earnings on an adjustedtrial balance is the beginning retained earnings for theperiod.

	A.	True, False, False, False
	B.	False, True, True, False
	C.	True, False, False, True
	D.	False, True, True, True
	E.	True, True, False, False

1 points

QUESTION 8

Mark each of these items as an accrued asset, accrued liability,deferred expense or deferred revenue, then select the correctmultiple-choice answer.

________ Interest of $500 on a notereceivable was earned at year âend, although collection of theinterest is not due until the following year.

________ At year-end, cash of $1,000 wascollected for a job to be performed in the following year.

________ Office supplies were purchasedduring the year for $700, and $100 of them remained on hand atyear-end.

________ At year-end, wages payable of $2,900had not been recorded or paid.

	A.	Accrued Asset, Accrued Liability, Deferred Revenue, DeferredExpense
	B.	Accrued Asset, Deferred Revenue, Deferred Expense, AccruedLiability
	C.	Deferred Revenue, Deferred Expense, Accrued Asset, AccruedLiability
	D.	Deferred Expense, Accrued Asset, Accrued Liability, DeferredRevenue
	E.	Deferred Revenue, Accrued Liability, Accrued Asset, DeferredExpense

violetraccoon987

June	3.	Paid the treasurer of the union the amount of union dues withheld from workers' earnings during May.
	15.	Payroll: $6,380. All wages and salaries taxable, except only $5,000 is taxable under FUTA and SUTA. Withheld $549 for federal income taxes, $128.70 for state income taxes, and $50 for union dues.
	15.	Electronically transferred funds to remove the liability for FICA taxes and federal income taxes withheld on the May payrolls.
	30.	Payroll: $6,250. All wages and salaries taxable, except only $4,770 is taxable under FUTA and SUTA. Withheld $538 for federal income taxes, $127.60 for state income taxes, and $50 for union dues.

The following are the account balances forwarded as of June 1:
(1) Union Due Payable: $105
(2) Employees SIT Payable: $480.27
(3) FICA Taxes Payable - OASDI: $1,471.88
(4) FICA Taxes Payable - HI: $344.24
(5) Employees FIT Payable: $1,040.00
(6) FUTA Taxes Payable: $292.11
(7) SUTA Taxes Payable: $547.98
(8) Cash: $31,805.77
(9) Wages and Salaries: $95,185.00
(10) Payroll taxes: $9,360.29

Note: The SUTA tax rate is 2.3%.

a. Analyze and journalize the transactions described in the narrative above. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

GENERAL JOURNAL			PAGE 21
DATE	DESCRIPTION	DEBIT	CREDIT
20--
Jun. 3	Union Dues Payable
	Cash

Jun. 15-Payroll	Wages and Salaries
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Employees SIT Payable
	Union Dues Payable
	Cash

Jun. 15-Taxes	Payroll Taxes
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	FUTA Taxes Payable
	SUTA Taxes Payable

Jun. 15-Federal Taxes	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Cash

Jun. 30-Payroll	Wages and Salaries
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Employees SIT Payable
	Union Dues Payable
	Cash

Jun. 30-Taxes	Payroll Taxes
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	FUTA Taxes Payable
	SUTA Taxes Payable

b. Post the June journal entries in chronological order to the general ledger accounts in the attached spreadsheet. When finished, enter the final June 30 balance of each account below.

1. Cash	$
2. FICA Taxes Payable-OASDI	$
3. FICA Taxes Payable-HI	$
4. FUTA Taxes Payable	$
5. SUTA Taxes Payable	$
6. Employees FIT Payable	$
7. Employees SIT Payable	$
8. Union Dues Payable	$
9. Wages and Salaries	$
10. Payroll Taxes	$

c. Answer the following questions:

Enter your answers to the nearest cent. If an amount is zero, enter "0".

1. The total amount of the liability for FICA taxes and federal income taxes withheld as of June 30 is:

2. The total amount of the liability for state income taxes withheld as of June 30 is:

3. The amount of FUTA taxes that must be paid to the federal government on or before August 1 (July 31 is a Sunday) is:

4. The amount of contributions that must be paid into the state unemployment compensation fund on or before August 1 is:

5. The total amount due the treasurer of the union is:

6. The total amount of wages and salaries expense since the beginning of the fiscal year is:

7. The total amount of payroll taxes expense since the beginning of the fiscal year is:

8. Using the partial journal below, journalize the entry to record the vacation accrual at the end of the company's fiscal year. The amount of Brookins Company's vacation accrual for the fiscal year is $15,000.

Account	Debit	Credit
Vacation Benefits Expense
Vacation Benefits Payable

blushcheetah321

ACCT 1A Lecture Notes - Lecture 9: Financial Statement, Accounts Payable, Accrual

Document Summary

Get access

Related Documents

ACCT 1A Lecture Notes - Lecture 19: Capital Cost Allowance, Deferred Tax, Deferred Income

ACCT 1A Lecture Notes - Lecture 18: Deferral, Accrual, Retained Earnings

ACCT 1A Lecture Notes - Lecture 6: Accrual, Deferred Income, Accounts Payable

Related Questions