On August 1, 2015, Trico Technologies, an aeronautic electronics company, borrow
ID: 2470233 • Letter: O
Question
On August 1, 2015, Trico Technologies, an aeronautic electronics company, borrows $19.6 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31.
Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions.)
record journal entry acceptance of note receivable
2.
During January, Luxury Cruise Lines incurs employee salaries of $2.7 million. Withholdings in January are $206,550 for the employee portion of FICA, $405,000 for federal income tax, $168,750 for state income tax, and $27,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $167,400 for federal and state unemployment tax and $81,000 for the employer portion of health insurance.
Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions.)
On August 1, 2015, Trico Technologies, an aeronautic electronics company, borrows $19.6 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31.
Explanation / Answer
We Journalise as below
Date Particulars Debit Credit 1 9 % Notes Receivable 19.6 Million Cash 19.6 Million (acceptance of notes receivables by trico technologies) 2 Salary expense 2700000 Fica Tax Payabe 206550 Federal Income Tax Withholding Payable 405000 State Income Tax Withholding Payable 168750 Health Insurance Expense 27000 Net Payroll Payable 1892700 ( Salary expnse for Luxury Cruise) 3 Payroll Tax expense 167400 Health insurance expense 81000 Federal and state unemployment tax expense payable 167400 Health insurance expense payable 81000 ( Employer portion of taxes and health insurance)Related Questions
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