Purchased computer equipment at a cost of $13,000, signing a six-month, 9% note

Question

Purchased computer equipment at a cost of $13,000, signing a six-month, 9% note payable or that amount. Recorded the week's sales of $66,000, three-fourths on credit and one-fourth for cash. Sales amounts were subject to 6% state sales tax. Ignore cost of goods sold. Sent the last week's sales tax to the state. Paid the six month, 9% note, plus interest at maturity. Purchased merchandise inventory for $6,000, signing a six-month, 10% note payable. The company uses a perpetual inventory system. Accrued warranty expense, which is estimated at 3% of sales of $601,000. Accrued interest on all outstanding notes payable. Paid the six month 10% note, plus interest at maturity. Account for current liabilities of a known amount Calculate and journalize basic payroll transactions Account for current liabilities that must be estimated Account for contingent liabilities Calculate the times-interest-earned ratio Jen Linley works at College of Boston and is paid $40 per hour for a 40-hour workweek and time-and-a-half for hours above 40. Compute Linley's gross pay for working 54 hours during the first week of February. Linley is single, and her income tax withholding is 10% of total pay. Linley's only payroll deductions are payroll taxes. Compute Linley's net (take-house) pay for the week. Assume Linley's earnings to date are less than the OASDI limit. Journalize the accrual of salaries and wages expense and payments related to the employment of Jen Linley. Journalize the payroll expense of the employer, assuming that she has not reached any limits. Rates: OASDI - Soc. Sec. 6.2%, OASDI - Medicare 1.45%, SUTA - 5.4%, FUTA - 0.6%

Explanation / Answer

There are two question but I am answering only one question.

Date

Account

Debit

Credit

Jan 9

Computer Equipment

13000

Note Payable

13000

Jan 29

Receivables

52470

Cash

17490

Sales

66000

Sales Tax

3960

Feb 5

Sales Tax

3960

Cash

3960

July 9

Note Payable

13000

Interest Payable

1170

Cash

14170

Aug 31

Inventory

6000

Note Payable

6000

Dec 31

Warranty Expenses

18030

Accrued Warranty Liability

18030

Dec 31

Interest Expenses

600

Interest Payable

600

Feb 29

Note Payable

6000

Interest Payable

600

Cash

6600

Date

Account

Debit

Credit

Jan 9

Computer Equipment

13000

Note Payable

13000

Jan 29

Receivables

52470

Cash

17490

Sales

66000

Sales Tax

3960

Feb 5

Sales Tax

3960

Cash

3960

July 9

Note Payable

13000

Interest Payable

1170

Cash

14170

Aug 31

Inventory

6000

Note Payable

6000

Dec 31

Warranty Expenses

18030

Accrued Warranty Liability

18030

Dec 31

Interest Expenses

600

Interest Payable

600

Feb 29

Note Payable

6000

Interest Payable

600

Cash

6600

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