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Ashford University Acct 205 Week 4 Assignment

In: Business and Management

Submitted By tshhunter
Words 314
Pages 2
1.
A. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following.
02-28-xx Brookhaven Debit Credit Salary expense 50000 Social Security taxes Payable 2000 Medicare taxes payable 750 Federal income taxes payable 7500 State income taxes payable 2000 Insurance withholdings 500

B. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the following Social Security taxes Payable 2000 Medicare taxes payable 750 State unemployment taxes payable 2700 Federal Unemployment taxes payable 400

2. Prepare journal entries to record the transactions.
A.
12-20xx Visconti’s Debit Credit

1-Dec Cash 10000 Note payable 10000 10-Dec Warranty expense 810 Warranty payable 810 22-Dec Purchases/Inventory 16000 Account payable 16000 26-Dec Cash 5000 Note payable 5000 31-Dec Warranty payable 162 Cash 162 31-Dec Salary expense 1400 Salary payable 1400

B. Prepare adjusting entries on December 31 to record accrued interest for each of the notes payable.

31-Dec Interest expense 138 Interest payable 138

3.
A. Prepare journal entries to record the transactions.

Date Title of account Debit Credit

2-Aug Cash 55000 Note payable 55000 20-Aug Delivery Truck 50000 Note payable 50000 10-Sep Purchases/Inventory 15000 Note payable 15000 11-Sep Account Payable 60000 Note payable 60000 10-Oct Note payable 15000 Interest Expense 150 Cash 15150 11-Oct Note payable 60000 Interest Expense 700 Cash 60700 30-Oct Note payable 55000 Interest Expense 1650 Cash 56650

B. Prepare adjusting entries on December 31 to record accrued interest. (Daily interest is calculated utilizing the 360 day method).
31-Dec Interest expense 2233 Interest payable 2233

C. Prepare the Current Liability section of Red Bank’s balance sheet as of December 31. Assume that the Accounts Payable account totals $203,600 on this date.
Account payable 203600
Note payable 50000
Interest payable 2233
Total current liabilities 255833

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