During the month of February, Western Corporation employees earned a salary of $ 100,122. Withholdings related to these wages were $ 5,683 for Social Security (FICA), $ 9,877 for federal income tax, and $ 2,435 for state income tax. The costs of unemployment taxes was $ 149 for federal and $ 216 for the state. MedlinePlus
Prepare journal entries for February 28 (a) wages and salaries expenditure payable assuming that all wages will be paid in February March and (b) the tax on the company payroll. (List multiple debit / credit entries high to low amount, for example, 10, 5, 2). MedlinePlus
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Date Description / Account Debit Credit MedlinePlus
(A) 28 February MedlinePlus
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(B) 28 February MedlinePlus
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2. Goliath Corporation issued $ 351,000 of bonds for $ 365,040. (A) Prepare the journal entry to record the issuance of the Bonds, and (b) show how the bonds are reported in the balance sheet at the date of issue. MedlinePlus
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Date Description / Account Debit Credit MedlinePlus
February 28 MedlinePlus
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$ MedlinePlus
Plus: MedlinePlus
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$ MedlinePlus
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3. Melissa Hoadley and Kelly Quayle borrowed $ 21,924 on a 7-month, 9% note from Gopher State Bank to open their business, MK Coffee House. The money was paid on 1 June 2010, and the note due January 1, 2011. MedlinePlus
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(A) Preparation of the entry to record the receipt of loan funds. MedlinePlus
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Date Account / Description Debit Credit MedlinePlus
June 1 MedlinePlus
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(B) Prepare the entry to accrue the interest on June 30. (Answers Round to 0 decimal places, eg 255 and use a rounded amount for future calculations.) MedlinePlus
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Date Account / Description Debit Credit MedlinePlus
June 30 MedlinePlus
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(C) Assuming adjusting entries made at the end of each month, determine the account balance of interest payable at December 31, 2010. MedlinePlus
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$ MedlinePlus
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(D) Prepare the entry required on January 1, 2011, when the loan is repaid. (List multiple debit / credit entries high to low amount, for example, 10, 5, 2). MedlinePlus
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Date Account / Description Debit Credit MedlinePlus
January 1 MedlinePlus
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4. On September 1, 2010, Elmdale Corporation issued $ 647,100, 8%, 10-year bonds at face value. Interest is paid annually on September 1. Elmdale year end is December 31. MedlinePlus
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Prepare journal entries to record the following events. (List multiple debit / credit entries high to low amount, for example, 10, 5, 2. Round responses to 0 places, for example 25,100) MedlinePlus
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(A) The issuance of the bonds. MedlinePlus
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Date Account / Description Debit Credit MedlinePlus
September 1 MedlinePlus
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(B) The accrual of interest at December 31, 2010. MedlinePlus
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Date Account / Description Debit Credit MedlinePlus
December 31 MedlinePlus
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(C) The interest payment on September 1, 2011. MedlinePlus
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Date Account / Description Debit Credit MedlinePlus
September 1