Solve the following problems below using the Excel form provided by clicking her
ID: 2453318 • Letter: S
Question
Solve the following problems below using the Excel form provided by clicking here.
On October 1, MAP Consulting Company borrows $15,000 cash on a note payable from ABC Bank with terms of 120 days @ 10%. They agreed to use a 360-day year for simple interest calculations. MAP Consulting Company’s fiscal year ends on December 31. Journalize the following transactions: 10/01—the initiation of the note, 12/31—the adjusting entry for accrued interest (hint: accrue for 90 days), and 02/01 payment of the note on its due date.
MAP Consulting Company has 5 employees. Their salary for the week ending June 25, 2010 and federal and state withholding taxes have already been calculated for your convenience.
Instructions:
Determine how much Social Security and Medicare tax is due for each employee using the exact rates as they currently prevail. No employee has reached the Social Security ceiling at this time.
Assuming there are no other deductions except the deductions from the table (make sure that you include Social security and Medicare tax); determine the net pay of each employee.
Journalize the payroll entry for the period on June 25, 2010 payable on June 28, 2010.
Journalize the payroll tax expense entry on June 25, 2010 payable on June 28, 2010. (Assume that all employees have already met the ceiling for Federal and State Unemployment Tax therefore: no unemployment taxes are due at this time).
Explanation / Answer
Ans-
on 1st oct 2010
Bank a/c Dr $15000
To account payable a/c $15000
(being amount borrow $15000 from ABC bank)
On 31th dec 2010
Interest expense a/c Dr $1125
To Interest payable a/c $1125
(being accured interest due on 31 th dec @10% for 60 days)
On 2nd jan
Account payable a/c Dr $15000
Interest payable a/c Dr $1125
To bank a/c $16125
(being loan & interest paid on 2nd jan)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.