The Tusquitte Company is a retail company that began operations on October 1, 20
ID: 2600722 • Letter: T
Question
The Tusquitte Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Tusquitte Company is authorized to issue 100,000 shares of $1 par value common stock and 50,000 shares of 5%,50 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 6% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month. Following is the chart of accounts for The Tusquittee Company. As a new business, all beginning balances are S0. The Tusquittee Company Chart of Accounts Cash Merchandise Inventory Land Building Store Fixtures Notes Payable Mortgages Payable Common Stock $1 Par Value Paid-In Capital in Excess of Par Common Paid-In Capital from Treasury Stock Transactions Retained Earnings Treasury Stock Common Cash Dividends Sales Revenue Cost of Goods Sold Salarics Expense Payroll Tax Expense Udilities Espense Depreciation Expensc Warranty Expense Income Tas Expense Interest Expense Accounts Payable Employee Income Taxes Payable FICA OASDI Taxes Payable FICA -Medicare Taxes Payable Employee Health Insurance Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Income Tax Payable Sales Tax Payable Estimated Warranty Payable Interest PayableExplanation / Answer
DATE
2018
DETAILS
AMOUNT
DEBIT A/C
CREDIT A/C
OCT 1
ISSUED 25,000 SHARES $1 PAR VALUE COMMON STOCK SHARES
25000
CASH
COMMON STOCK
225000
CASH
EXCESS PAR
1
ISSUED 8%, $200,000 MORTGAGE 10 YEAR
200,000
CASH
MORTGAGE
1
NOTE PAYABLE FOR FIXTURES
10000
FIXTURES
NOTE PAYABLE
3
PURCHASED MERCHANDISE
125000
PURCHASES
ACC PAY TOP RATE
15
PAID UTILITIES
160
UTILITIES
CASH
31
CASH SALES
185000
CASH
SALES
31
TAX ON SALES
11100
CASH
TAX ON SALES
31
Salaries for oct
9850
S & W payable
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
14000
SALARIES & WAGES EXP
NOV 1
PAID MORTGAGE
2425
MORT PAYABLE
CASH
3
PAID ACC PAY TOP RATE
125000
ACC PAY TOP PAY
CASH
10
PURCHASED INVENTORY
150000
PURCHASES
ACC PAY TOP PAY
12
PAID FOR TRES STOCK 300 X $15
4500
TRES STOCK
CASH
15
SALARIES PAID
9850
S & W PAYABLE
CASH
15
PAID SALES TAX
11100
SALES TAX PAYABLE
CASH
16
PAID WARRANTY CLAIMS
6000
WARRANTY CLAIMS
CASH
17
DECLARED DIVIDENDS
25000
DIVIDENDS
DIVIDEND PAYABLE
18
UTILIY PAID
245
UTILITY
CASH
27
PAID DIVIDENDS
25000
DIV PAYABLE
CASH
30
CASH SALES FOR NOV
148400
CASH
140000
SALES
8400
SALES TAX PAYABLE
30
Salaries for NOV
9850
S & W payable
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
14000
SALARIES & WAGES EXP
DEC 1
PAID MORTGAGE
2425
MORT PAY
CASH
10
PAID ACC PAY TOP RATE
ACC PAY
TOP PAY
CASH
12
WARRANTY CLAIMS
7500
WARRANTY CLAIMS
CASH15
15
TRES SHARES SOLD 300 X $20
6000
CASH
TRES STOCK
15
SALARIES PAID FOR NOV
9850
S & W PAYABLE
CASH
15
REMITTED SALES TAX
8400
SALES TAX
CASH
18
UTILITIES
220
UTILITIES
CASH
19
PURCHASES ON A/C TOP RATE
90000
PURCHASES
ACC PAY TOP RATE
31
CASH SALES
222600
CASH
210000
SALES
12600
SALES TAX
31
Salaries for DEC
9850
S & W payable
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
14000
SALARIES & WAGES EXP
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
31
INCOME TAX ACCRUED
36000
INCOME TAX EXP
INCOME TAX PAY
DATE
2018
DETAILS
AMOUNT
DEBIT A/C
CREDIT A/C
OCT 1
ISSUED 25,000 SHARES $1 PAR VALUE COMMON STOCK SHARES
25000
CASH
COMMON STOCK
225000
CASH
EXCESS PAR
1
ISSUED 8%, $200,000 MORTGAGE 10 YEAR
200,000
CASH
MORTGAGE
1
NOTE PAYABLE FOR FIXTURES
10000
FIXTURES
NOTE PAYABLE
3
PURCHASED MERCHANDISE
125000
PURCHASES
ACC PAY TOP RATE
15
PAID UTILITIES
160
UTILITIES
CASH
31
CASH SALES
185000
CASH
SALES
31
TAX ON SALES
11100
CASH
TAX ON SALES
31
Salaries for oct
9850
S & W payable
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
14000
SALARIES & WAGES EXP
NOV 1
PAID MORTGAGE
2425
MORT PAYABLE
CASH
3
PAID ACC PAY TOP RATE
125000
ACC PAY TOP PAY
CASH
10
PURCHASED INVENTORY
150000
PURCHASES
ACC PAY TOP PAY
12
PAID FOR TRES STOCK 300 X $15
4500
TRES STOCK
CASH
15
SALARIES PAID
9850
S & W PAYABLE
CASH
15
PAID SALES TAX
11100
SALES TAX PAYABLE
CASH
16
PAID WARRANTY CLAIMS
6000
WARRANTY CLAIMS
CASH
17
DECLARED DIVIDENDS
25000
DIVIDENDS
DIVIDEND PAYABLE
18
UTILIY PAID
245
UTILITY
CASH
27
PAID DIVIDENDS
25000
DIV PAYABLE
CASH
30
CASH SALES FOR NOV
148400
CASH
140000
SALES
8400
SALES TAX PAYABLE
30
Salaries for NOV
9850
S & W payable
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
14000
SALARIES & WAGES EXP
DEC 1
PAID MORTGAGE
2425
MORT PAY
CASH
10
PAID ACC PAY TOP RATE
ACC PAY
TOP PAY
CASH
12
WARRANTY CLAIMS
7500
WARRANTY CLAIMS
CASH15
15
TRES SHARES SOLD 300 X $20
6000
CASH
TRES STOCK
15
SALARIES PAID FOR NOV
9850
S & W PAYABLE
CASH
15
REMITTED SALES TAX
8400
SALES TAX
CASH
18
UTILITIES
220
UTILITIES
CASH
19
PURCHASES ON A/C TOP RATE
90000
PURCHASES
ACC PAY TOP RATE
31
CASH SALES
222600
CASH
210000
SALES
12600
SALES TAX
31
Salaries for DEC
9850
S & W payable
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
14000
SALARIES & WAGES EXP
3250
FED TAX PAYABLE
900
HEALTH INSURANCE
31
INCOME TAX ACCRUED
36000
INCOME TAX EXP
INCOME TAX PAY
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.