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6 Declared dividends, payable on December 20, to stockholders of record on Decem

ID: 2586293 • Letter: 6

Question

         6 Declared dividends, payable on December 20, to stockholders of record on December 13 as follows:

a. Cash dividends of 4% on the preferred stock.

b. Cash dividends of $1.00 per share on the 20,250 common share outstanding.

         6 Issued check # 1107 for $5,612.25 to MD Computers for computers.

           6 Purchased $648.75 of office supplies and $925.50 of store supplies on account from Ready Office Supplies, Inc.

            6 Issued check # 1108 for $631.50 to All About Roofing, Inc. for roof repair and maintenance.   

Dec     6 Received a check from Happy Island Golf Course in payment of our invoice of Nov. 29 for $3,075.00.

         7 Completed computer servicing and installing computers for Ted’s 24-7 Grill and billed them $9,369.75, Inv. # 210, for professional services.

         7 Received a check from Jake Construction Company in payment of our invoice of Nov. 30 for $4275.00, less discount.

         8 Sold computers on account to Southeast Dental Group, Inv. # 711 for $1,162.50. Cost of Goods sold $930.

         8 Issued a check # 1109 for $209.25 to Joseph King for plumbing repairs

         9 Received a check for $561.75 from Valley Water Sports, Inc. in payment of our invoice of Nov. 14.

         9 Received a check for $97.50 from Supplies R Us or the return of office supplies previously purchased for cash.

         9 Sold computer-servicing services on account to Lucky’s Sports Bar, Invoice # 217, for $1,156.50. Cost of goods $92.52

         9 Issued check # 1110 for $506.25 to Jose Campos a tax lawyer for a one-time consultation fee. (Debit Professional Fees Expense).

         10 Record the biweekly payroll, details as follows:

               Sales salaries $2,692.50,

                Office salaries, $438.75

                Officers’ salaries 1,500.00

                Federal income tax withheld, $1,387.50;

                FICA taxes withheld, $347.34.

         10 Issued check # 1111 for $2,896.41 to Payroll Bank Account in payment of the net payroll.

         10 Record the employer’s payroll taxes:

                 FICA tax, $347.34

                 State unemployment tax, $126.17

                 Federal unemployment tax, $14.57.

         10 Issued check # 1112 to Island Community Bank in payment of payroll taxes

                FICA tax payable, $649.68

                 Employees’ federal income tax payable, $1,387.50.

         6 Declared dividends, payable on December 20, to stockholders of record on December 13 as follows:

a. Cash dividends of 4% on the preferred stock.

b. Cash dividends of $1.00 per share on the 20,250 common share outstanding.

         6 Issued check # 1107 for $5,612.25 to MD Computers for computers.

           6 Purchased $648.75 of office supplies and $925.50 of store supplies on account from Ready Office Supplies, Inc.

            6 Issued check # 1108 for $631.50 to All About Roofing, Inc. for roof repair and maintenance.   

Explanation / Answer

Date Particulars L.F Dr ($) Cr ($) Dec Dividend A/c Dr 20250 To Bank A/c 20250 Computers A/c Dr 5615.5 To Bank A/c 5612.5 Purchase A/c Dr 1574.25 To Ready OfficE Supplies Inc. 1574.25 Repair & Maintenance A/c Dr 631.5 To Bank A/c 631.5 Bank A/c Dr 3075 To Happy Island Golf Course 3075 Ted's 24-7 Grill Dr 9369.75 To Professional Services 9369.75 Bank A/c Dr 4275 To Jake Costruction Company 4275 Southeast Dental Group Dr 1162.5 To Sale A/c 1162.5 Repair & Maintenance A/c Dr 209.25 To Bank A/c 209.25 Bank A/c Dr 561.75 To Valley Water Sports Inc. 561.75 Bank A/c Dr 97.5 To Purchase Return A/c 97.5 Lucky's Sports Bar Dr 1156.5 To Sale A/c 1156.5 Professional Fess Expense A/c Dr 506.25 To Bank A/c 506.25 Salesman Salaries A/c Dr 2692.5 Office Salaries A/c Dr 438.75 Officer's Salaries A/c Dr 1500 Federal Income Tax Withheld A/c Dr 1387.5 FICA Taxes Witheld A/c Dr 347.34 To Salesman Salaries Payable A/c 2692.5 To Office Salaries Payable A/c 438.75 To Officer's Salaries Payable A/c 1500 To Federal Income Tax A/c 1387.5 To FICA Taxes A/c 347.34 Payroll Bank A/c Dr 2896.41 To Bank A/c 2896.41 FICA Tax A/c Dr 347.34 State Unemployment Tax A/c Dr 126.17 Federal Income Tax A/c Dr 14.57 To FICA Tax Payable A/c 347.34 To State Unemployment Tax Payable A/c 126.17 To Federal Income Tax Payable A/c 14.57 FICA Tax Payable A/c Dr 649.68 Employee Federal Income Tax Payable A/c Dr 1387.5 To Bank A/c 2037.18 60272.51 60269.51

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