Requirement 1a. In preparation for recording the transactions, prepare: An amort
ID: 2412582 • Letter: R
Question
Requirement 1a. In preparation for recording the transactions, prepare: An amortization schedule for the first 3 months of the mortgage payable issued on
OctoberOctober
1. Round interest calculations to the nearest dollar.
Beginning
Principal
Interest
Total
Ending
Balance
Payment
Expense
Payment
Balance
10/01/2018
$320,000
11/1/2018
$320,000
$2,667
$1,333
$4,000
$317,333
12/1/2018
317,333
2,678
1,322
4,000
314,655
01/01/2019
314,655
2,689
1,311
4,000
311,966
Requirement 1b. In preparation for recording the transactions, prepare: Payroll registers for
OctoberOctober ,
NovemberNovember ,
and
DecemberDecember.
All employees worked
OctoberOctober
1 through
DecemberDecember
31 and are subject to the following FICA taxes: OASDI:
6.26.2 %
on first
$ 118 comma 500$118,500
earned; Medicare:
1.451.45 %
up to
$ 200 comma 000$200,000 ,
2.352.35 %
on earnings above
$ 200 comma 000$200,000.
Begin by preparing the payroll register for
OctoberOctober.
(Round all amounts to the nearest cent. Complete all answer boxes. Enter a "0" for any zero balances. Abbreviations used: Beg. = Beginning; Cum. = Cumulative; Earn. = Earnings; Med. = Medicare; Ins. = Insurance; With. = Withholdings.)
Earnings
Withholdings
Beg.
Current
Ending
Cum.
Period
Cum.
Income
Health
Total
Net
Employee
Earn.
Earnings
Earn.
OASDI
Med.
Tax
Ins.
With.
Pay
Jenning
$0.00
$5,600.00
$5,600.00
$347.20
$81.20
$1,680.00
$150.00
$2,258.40
$3,341.60
Shepard
0.00
4,800.00
4,800.00
297.60
69.60
960.00
150.00
1,477.20
3,322.80
Morgan
0.00
2,500.00
2,500.00
155.00
36.25
375.00
150.00
716.25
1,783.75
$0.00
$12,900.00
$12,900.00
$799.80
$187.05
$3,015.00
$450.00
$4,451.85
$8,448.15
Next, prepare the payroll register for
NovemberNovember.
Earnings
Withholdings
Beg.
Current
Ending
Cum.
Period
Cum.
Income
Health
Total
Net
Employee
Earn.
Earnings
Earn.
OASDI
Med.
Tax
Ins.
With.
Pay
Jenning
$5,600.00
$5,600.00
$11,200.00
$347.20
$81.20
$1,680.00
$150.00
$2,258.40
$3,341.60
Shepard
4,800.00
4,800.00
9,600.00
297.60
69.60
960.00
150.00
1,477.20
3,322.80
Morgan
2,500.00
2,500.00
5,000.00
155.00
36.25
375.00
150.00
716.25
1,783.75
$12,900.00
$12,900.00
$25,800.00
$799.80
$187.05
$3,015.00
$450.00
$4,451.85
$8,448.15
Finally, prepare the payroll register for
DecemberDecember.
Earnings
Withholdings
Beg.
Current
Ending
Cum.
Period
Cum.
Income
Health
Total
Net
Employee
Earn.
Earnings
Earn.
OASDI
Med.
Tax
Ins.
With.
Pay
Jenning
$11,200.00
$5,600.00
$16,800.00
$347.20
$81.20
$1,680.00
$150.00
$2,258.40
$3,341.60
Shepard
9,600.00
4,800.00
14,400.00
297.60
69.60
960.00
150.00
1,477.20
3,322.80
Morgan
5,000.00
2,500.00
7,500.00
155.00
36.25
375.00
150.00
716.25
1,783.75
$25,800.00
$12,900.00
$38,700.00
$799.80
$187.05
$3,015.00
$450.00
$4,451.85
$8,448.15
Requirement 1c. In preparation for recording the transactions, prepare: Calculations for employer payroll taxes liabilities for
OctoberOctober ,
NovemberNovember ,
and
DecemberDecember :
OASDI:
6.26.2 %
on first
$ 118 comma 500$118,500
earned; Medicare:
1.451.45 %;
SUTA:
5.45.4 %
on first
$ 7 comma 000$7,000
earned; FUTA:
0.60.6 %
on first
$ 7 comma 000$7,000
earned. (Round your answers to the nearest cent.)Begin by preparing the calculations for employer payroll taxes liabilities for
OctoberOctober.
Tax
Taxable Earnings
Amount
OASDI
$12,900.00
$799.80
Medicare
12,900.00
187.05
SUTA
12,900.00
696.60
FUTA
12,900.00
77.40
$1,760.85
Next, prepare the calculations for employer payroll taxes liabilities for
NovemberNovember.
Tax
Taxable Earnings
Amount
OASDI
$12,900.00
$799.80
Medicare
12,900.00
187.05
SUTA
6,100.00
329.40
FUTA
6,100.00
36.60
$1,352.85
Finally, prepare the calculations for employer payroll taxes liabilities for
DecemberDecember.
Tax
Taxable Earnings
Amount
OASDI
$12,900.00
$799.80
Medicare
12,900.00
187.05
SUTA
2,000.00
108.00
FUTA
2,000.00
12.00
$1,106.85
Requirement 2. Record the transactions in the general journal. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.)
Oct.Oct.
1: Issued
38 comma 00038,000
shares of $1 par value common stock for cash of
$ 24$24
per share.
Date
Accounts
Debit
Credit
Oct. 1
Cash
912,000
Common Stock—$1 Par Value
38,000
Paid-in Capital in Excess of Par—Common
874,000
Oct.Oct.
1: Issued a
$ 320 comma 000$320,000 ,
10-year,
55 %
mortgage payable for land with an existing store building. Mortgage payments of
$ 4 comma 000$4,000
are due on the first day of each month, beginning
NovemberNovember
1. The assets had the following market values: Land,
$ 200 comma 000$200,000 ;
Building,
$ 120 comma 000$120,000.
Date
Accounts
Debit
Credit
Oct. 1
Land
200,000
Building
120,000
Mortgages Payable
320,000
Oct.Oct.
1: Issued a one-year,
88 %
note payable for
$ 7 comma 200$7,200
for store fixtures. The principal and interest are due
OctoberOctober
1,
20192019.
Date
Accounts
Debit
Credit
Oct. 1
Store Fixtures
7,200
Notes Payable
7,200
Oct.Oct.
3: Purchased merchandise inventory on account from
Elite SupplyElite Supply
for
$ 124 comma 000$124,000 ,
terms n/30.
Date
Accounts
Debit
Credit
Oct. 3
Merchandise Inventory
124,000
Accounts Payable
124,000
Oct.Oct.
15: Paid
$ 200$200
for utilities.
Date
Accounts
Debit
Credit
Oct. 15
Utilities Expense
200
Cash
200
Oct.Oct.
31: Recorded cash sales for the month of
$ 140 comma 000$140,000
plus sales tax of
77 %.
The cost of the goods sold was
$ 84 comma 000$84,000
and estimated warranty payable was
66 %.
Record the sale first. Do not record the cost of the sale or the estimated warranty payable. We will do this in the following steps.
Date
Accounts
Debit
Credit
Oct. 31
Cash
149,800
Sales Revenue
140,000
Sales Tax Payable
9,800
Record the cost of the sale.
Date
Accounts
Debit
Credit
Oct. 31
Cost of Goods Sold
84,000
Merchandise Inventory
84,000
Record the estimated warranty payable.
Date
Accounts
Debit
Credit
Oct. 31
Warranty Expense
8,400
Estimated Warranty Payable
8,400
Save Accounting Table... + Copy to Clipboard... + The Lattimore Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Lattimore Company is authorized to issue 150,000 shares of $1 par value common stock and 60,000 shares of 6%, $40 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month Customers are charged a 7% state tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly sala on the last day of the month. Following is the chart of accounts for The Lattimore Company. As a new business, all beginning balances are $0 (Click the icon to view the chart of accounts.) The Lattimore Company completed the following transactions during the last quarte of 2018, its first year of More Info Oct. 31: Recorded October payroll and paid employees. (Enter all amounts to the nearest dollar.) Oct. 1 Issued 38,000 shares of S1 par value common stock for cash of $24 per share. 1 Issued a $320,000, 10-year, 5% mortgage payable for land with an existing store building Mortgage payments of $4,000 are due on the first day of each month, beginning Date Accounts Debit Credit November 1. The assets had the following market values: Land, $200,000; Building. $120,000 1 12,900 Salaries Expense Employee Income Taxes Payable Oct. 31 issued a one-year, 8% note payable for $7,200 for store fixtures The principal and 4451.85 interest are due October 1, 2019 3 Purchased merchandise inventory on account from Elite Supply for $124,000, terms n/30 15 Paid $200 for utilities. 31 Recorded cash sales for the month of $140,000 plus sales tax of 7%. The cost of the goods sold was $84,000 and estimated warranty payable was 6% Recorded October payroll and paid employees. Accrued employer payroll taxes for October Pald the first mortgage payment. 31 31 Choose from any list or enter any number in the input fields and then click Check Answer. Nov. 1 3 Paid Elite Supply for the merchandise inventory purchased on October 3. 10 Purchased merchandise inventory on account from Elite Supply for $200,000, tems n/30 12 Purchased 400 shares of treasury stock for $12 per share parts remainingExplanation / Answer
Accounts Title Dr Cr 31-Oct Salaries Expenses $12,900 Federal Income Tax Payable $3,015 OASDI taxes payable $799.80 Medicare Taxes payable 187.05 Health Insurance payable $450 Cash $8,448.15 (being salaries recorded and paid)( 31-Oct Payroll tax expenses $1,760.85 OASDI taxes payable $799.80 Medicare Taxes payable $187.05 Federal Unemployment taxes payable 77.4 State Unemployment taxes payable 696.6 (being payroll expenses accured) 1-Nov Interest expenses (320000*5%*1/12) 1333 Mortgage Payable (4000-1333) 2667 Cash 4000 3-Nov Accounts Payable $124,000 Cash $124,000 10-Nov Mercandise Inventory $200,000 Accounts Payable $200,000 12-Nov Treasury stock (400*12) 4800 Cash 4800 If any doubt please comment
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