PAYROLL ENTRIES
J&W Buffet Co. employees earned $350,000 in the week endedDecember 17, 2010. Of this, $26,775 was deducted from employeesâpay for FICA and $62,000 was deducted for income taxes.
Prepare the journal entry to record the employeesâ portion ofpayroll for December 17, 2010.
Prepare the journal entry to record the employerâs share of FICApayroll taxes for December 17, 2010.
HW 9 â 2
NOTES PAYABLE
Mumford Co. borrowed a $100,000 note payable on June 1, 2010,with 6% interest. The note is due on May 31, 2011.
Prepare the journal entry to record the issuance of the note andreceipt of cash on June 1, 2010.
Prepare the adjusting journal entry to record the interest owedat the end of the accounting period on December 31, 2010.
Prepare the journal entries to record the interest and principalpayments to the lender on May 31, 2011.
HW 9 â 3
UNEARNED REVENUE
On January 1, 2009, Charlie Rangel paid $2,000 for a twoâyearmembership to the Beam Gym.
Prepare the journal entry to record the receipt of cash onJanuary 1, 2009.
By December 31, 2009, one half of Rangelâs membership expired.Prepare the required adjusting journal entry on that date.
By December 31, 2010, the remainder of Rangelâs membershipexpired. Prepare the required adjusting journal entry on thatdate.
Post the entries above to the Unearned Revenue account:
Unearned Revenue
HW 9 â 4
ISSUING BONDS
Issuance of $800,000, 5-year, 8% payable annually (market rate12%) for cash of $684,627 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date
Cash
Payment of Interest
Interest Expense
Amortization of Discount
Carrying Value (Net Liability)
1/1/2007
None
None
None
12/31/2007
12/31/2008
12/31/2009
12/31/2010
12/31/2011
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
HW 9 â 5
ISSUING BONDS
Issuance of $1,200,000, 5-year, 10% payable annually (marketrate 8%) for cash of $1,295,844 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date
Cash
Payment of Interest
Interest Expense
Amortization of Premium
Carrying Value (Net Liability)
1/1/2007
None
None
None
12/31/2007
12/31/2008
12/31/2009
12/31/2010
12/31/2011
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
PAYROLL ENTRIES
J&W Buffet Co. employees earned $350,000 in the week endedDecember 17, 2010. Of this, $26,775 was deducted from employeesâpay for FICA and $62,000 was deducted for income taxes.
Prepare the journal entry to record the employeesâ portion ofpayroll for December 17, 2010.
Prepare the journal entry to record the employerâs share of FICApayroll taxes for December 17, 2010.
HW 9 â 2
NOTES PAYABLE
Mumford Co. borrowed a $100,000 note payable on June 1, 2010,with 6% interest. The note is due on May 31, 2011.
Prepare the journal entry to record the issuance of the note andreceipt of cash on June 1, 2010.
Prepare the adjusting journal entry to record the interest owedat the end of the accounting period on December 31, 2010.
Prepare the journal entries to record the interest and principalpayments to the lender on May 31, 2011.
HW 9 â 3
UNEARNED REVENUE
On January 1, 2009, Charlie Rangel paid $2,000 for a twoâyearmembership to the Beam Gym.
Prepare the journal entry to record the receipt of cash onJanuary 1, 2009.
By December 31, 2009, one half of Rangelâs membership expired.Prepare the required adjusting journal entry on that date.
By December 31, 2010, the remainder of Rangelâs membershipexpired. Prepare the required adjusting journal entry on thatdate.
Post the entries above to the Unearned Revenue account:
| Unearned Revenue |
HW 9 â 4
ISSUING BONDS
Issuance of $800,000, 5-year, 8% payable annually (market rate12%) for cash of $684,627 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date | Cash Payment of Interest | Interest Expense | Amortization of Discount | Carrying Value (Net Liability) |
1/1/2007 | None | None | None | |
12/31/2007 | ||||
12/31/2008 | ||||
12/31/2009 | ||||
12/31/2010 | ||||
12/31/2011 |
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
HW 9 â 5
ISSUING BONDS
Issuance of $1,200,000, 5-year, 10% payable annually (marketrate 8%) for cash of $1,295,844 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date | Cash Payment of Interest | Interest Expense | Amortization of Premium | Carrying Value (Net Liability) |
1/1/2007 | None | None | None | |
12/31/2007 | ||||
12/31/2008 | ||||
12/31/2009 | ||||
12/31/2010 | ||||
12/31/2011 |
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
Related questions
HW 9 â 4
ISSUING BONDS
Issuance of $800,000, 5-year, 8% payable annually (market rate12%) for cash of $684,627 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date | Cash Payment of Interest | Interest Expense | Amortization of Discount | Carrying Value (Net Liability) |
1/1/2007 | None | None | None | |
12/31/2007 | ||||
12/31/2008 | ||||
12/31/2009 | ||||
12/31/2010 | ||||
12/31/2011 |
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
HW 9 â 5
ISSUING BONDS
Issuance of $1,200,000, 5-year, 10% payable annually (marketrate 8%) for cash of $1,295,844 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date | Cash Payment of Interest | Interest Expense | Amortization of Premium | Carrying Value (Net Liability) |
1/1/2007 | None | None | None | |
12/31/2007 | ||||
12/31/2008 | ||||
12/31/2009 | ||||
12/31/2010 | ||||
12/31/2011 |
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
