> Problems GroupA P11-25A Journalizing and posting liabilities The general ledge

Question

> Problems GroupA P11-25A Journalizing and posting liabilities The general ledger of Seal-N-Ship at June 30, 2018, the end of year, includes the following account nces before payroll and adjusti 0 $ 114,000 Accounts Payable Interest Payable Salaries Payable Employee Income Taxes Payable FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable 0 0 Federal Unemployment Taxes Payable State Unemployment Taxes Payable 7,200 210,000 Unearned Rent Revenue Long-term Notes Payable The additional data needed to develop the payroll and adjusting entries at June 3V as follows a. The long-term debt is payable in annual installments of $42,000, with the nen installment due on July 31. On that date, Seal-N-Ship will also pay one years in est at 9%. Interest was paid on July 31 of the preceding year. Make the adjustin entry to accrue interest expense at year-end. b. Gross unpaid salaries for the last payroll of the fiscal year were $4,700. Assume that employee income taxes withheld are $910 and that all earnings are subject OASDI c. Record the associated employer taxes payable for the last payroll of thefisal we $4,700. Assume that the earnings are not subject to unemployment compensthie taxes d. On February 1, the company collected one year's rent of $7,200 in ad

Explanation / Answer

Working A Annual Installment of Long Term Debt      42,000 B Long Term Notes payable    210,000 C=B/A Number of Installments                 5 D Interest Rate 9% E=B*D Interest to be paid on unpaid balance      18,900 F Gross Unpaid salaries         4,700 G Employee Income Taxes witheld            910 H=F-G Salaries Payable         3,790 I Employer Taxes Payable         4,700 J Rent Received in Advance         7,200 T Accounts Long Term Notes Payable Date Particulars Debit Date Particulars Credit 7/31/2018 To Installment payable      42,000 6/30/2018 By Balance Brought Forward                                                               210,000 7/31/2018 To Interest payable      18,900 8/31/2018 To Balance Carried Forward    149,100    210,000                                                               210,000 Salaries Payable Date Particulars Debit Date Particulars Credit 6/30/2018 To Employee Income Taxes Withheld            910 6/30/2018 By Gross Salaries Payable                                                                    4,700 6/30/2018 To Net Salaries Payable         3,790         4,700                                                                    4,700 Journal Entries Debit Credit Long Term Notes Payable    149,100 Installments Payable            42,000 Interest payable            18,900 (For Installment & Interest Payable) Salaries Payable         3,790 Employee Income Taxes Withheld            910 Gross Salaries Payable              4,700 Current Laibilities as on June 30, 2018 Accounts Payable    114,000 Long Term Notes Payable    149,100 Salaries Payable         3,790 Emplyoee Income Taxes Withheld payable            910 Employer Taxes Paayble         4,700 Total Current Liabilities    272,500

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