Problem 11 2a entries for payroll transactions lo p2 p3

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Problem 10-2A Asset cost allocation; straight-line depreciation L.O. C1, P1 [The following information applies to the questions displayed below.]

In January 2011, Keona Co. pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $641,300, with a useful life of 20 years and an $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $408,100 that are expected to last another 14 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,865,600. The company also incurs the following additional costs:

Cost to demolish Building 1 $ 422,600 Cost of additional land grading 167,200 Cost to construct new building (Building 3), having a useful life of 25 years and a $390,100 salvage value

2,019,000

Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value

158,000

Total costs $ 5,566,800

Section Break Problem 10-2A Asset cost allocation; straight-line

depreciation L.O. C1, P1

Problem 10-2A Part 1 Required: 1. Allocate the costs incurred by Keona to the appropriate columns and total each column. (Leave no

cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Land Building 2 Building 3 Land

improvements 1 Land

improvements 2

Purchase price $ $ $ $ $

Demolition

Land grading

New building

New improvements

Totals $ $ $ $ $

Worksheet Problem 10-2A Part 1

Problem 10-2A Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January

1, 2011. (Omit the "$" sign in your response.)

Date General Journal Debit Credit

Jan. 1 (Click to select)

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rev: 11_26_2013_QC_41322, 11_30_2013_QC_41322

Worksheet Problem 10-2A Part 2

Problem 10-2A Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the

12 months of 2011 when these assets were in use. (Omit the "$" sign in your response.)

Date General Journal Debit Credit

Dec. 31 (Click to select)

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Worksheet Problem 10-2A Part 3

Problem 9-2A Accounts receivable transactions and bad debts adjustments L.O. C1, P2 Lopez Company began operations on January 1, 2010. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.

2010 a. Sold $1,353,800 of merchandise (that had cost $976,200) on credit, terms n/30. b. Wrote off $21,500 of uncollectible accounts receivable. c. Received $672,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable

will be uncollectible. 2011 e. Sold $1,529,600 of merchandise (that had cost $1,285,400) on credit, terms n/30. f. Wrote off $28,700 of uncollectible accounts receivable. g. Received $1,295,900 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable

will be uncollectible. Required: Prepare journal entries to record Lopez’s 2010 and 2011 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system.) (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) 2010

General Journal Debit Credit

a. (Click to select)

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b. (Click to select)

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c. (Click to select)

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2011 General Journal Debit Credit

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f. (Click to select)

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rev: 05_30_2013_QC_31178

Worksheet Problem 9-2A Accounts receivable transactions and bad

debts adjustments L.O. C1, P2

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Problem 11-6AA Entries for payroll transactions L.O. P2, P3, P5 Polo Company has 20 employees, each of whom earns $3,000 per month and is paid on the last day of each month. All 20 have been employed continuously at this amount since January 1. Polo uses a payroll bank account and special payroll checks to pay its employees. On March 1, the following accounts and balances exist in its general ledger:

a. FICA — Social Security Taxes Payable, $7,440; FICA — Medicare Taxes Payable, $1,740. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.)

b. Employees' Federal Income Taxes Payable, $15,000 (liability for February only). c. Federal Unemployment Taxes Payable, $960 (liability for January and February together). d. State Unemployment Taxes Payable, $4,800 (liability for January and February together).

During March and April, the company had the following payroll transactions.

Mar. 15 Issued check payable to Fleet Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $24,180 check is in payment of the February FICA and employee income taxes.

31 Recorded the March payroll and transferred funds from the regular bank account to the payroll bank account. Issued checks payable to each employee in payment of the March payroll. The payroll register shows the following summary totals for the March pay period.

Salaries and Wages

Office Salaries

Shop Wages

Gross Pay

FICA Taxes*

Federal Income Taxes

Net Pay

$ 24,000 $ 36,000 $ 60,000 $3,720 $ 15,000 $ 40,410 $ 870

* FICA taxes are Social Security and Medicare, respectively.

31 Recorded the employer's payroll taxes resulting from the March payroll. The company has a merit rating that reduces its state unemployment tax rate to 4.00% of the first $7,000 paid each employee. The federal rate is .80%.

Apr. 15 Issued check to Fleet Bank in payment of the March FICA and employee income taxes. 15 Issued check to the State Tax Commission for the January, February, and March state

unemployment taxes. Mailed the check and the first quarter tax return to the Commission. 30 Issued check payable to Fleet Bank in payment of the employer's FUTA taxes for the first

quarter of the year. 30 Mailed Form 941 to the IRS, reporting the FICA taxes and the employees' federal income tax

withholdings for the first quarter.

Required: Prepare journal entries to record the transactions and events for both March and April. (Record the transactions in the given order. In cases where no entry is required, please select the option "No

journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Date General Journal Debit Credit

Mar.15 (Click to select)

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31 (Click to select)

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Apr. 15 (Click to select)

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15 (Click to select)

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30 (Click to select)

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Worksheet Problem 11-6AA Entries for payroll transactions L.O. P2,

P3, P5

Problem 13-3A Equity analysis-journal entries and account balances L.O. P2 At September 30, the end of Excel Company’s third quarter, the following stockholders’ equity accounts are reported. Common stock, $10 par value $ 360,000 Paid-in capital in excess of par value, common stock 90,000 Retained earnings 360,000

In the fourth quarter, the following entries related to its equity are recorded. Date General Journal Debit Credit

Oct. 2 Retained Earnings 80,000 Common Dividend Payable 80,000

Oct. 25 Common Dividend Payable 80,000 Cash 80,000

Oct. 31 Retained Earnings 63,000 Common Stock Dividend Distributable 30,000 Paid-In Capital in Excess of Par Value, Common Stock 33,000

Nov. 5 Common Stock Dividend Distributable 30,000 Common Stock, $12 Par Value 30,000

Dec. 1 Memo—Change the title of the common stock account to reflect the new par value of $4.

Dec. 31 Income Summary 260,000

Retained Earnings 260,000

Required: Complete the following table showing the equity account balances at each indicated date (include the balances from September 30). (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Oct. 2 Oct. 25 Oct. 31 Nov. 5 Dec. 1 Dec. 31

Common stock $ $ $ $ $ $

Common stock dividend distributable

Paid-in capital in excess of par, common stock

Retained earnings

Total stockholders' equity $ $ $ $ $ $

Worksheet Problem 13-3A Equity analysis-journal entries and

account balances L.O. P2

Problem 14-9A Installment notes L.O. C1, P5 On November 1, 2011, Leetch Ltd. borrows $500,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. (Use Table B.3)

Required:

1. Compute the total amount of each installment payment. (Round "PV Factor" to 4 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Installment payment $

2. Complete an amortization table for this installment note. (Please calculate interest expense in the final period as the amount of cash minus the amount of the Beginning balance and make sure that the ending balance in the last period equals to "0". Leave no cells blank - be certain to enter "0" wherever required. Round "PV Factor" to 4 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Payments

Period Ending Date

(A) Beginning Balance

(B) Debit

Interest Expense

(C) Debit Notes

Payable

(D) Credit Cash

(E) Ending Balance

10/31/2012 $ $ $ $ $

10/31/2013

10/31/2014

10/31/2015

10/31/2016

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Total $ $ $

3. Prepare the journal entries in which Leetch records the following:

(a) Accrued interest as of December 31, 2011 (the end of its annual reporting period). (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date General Journal Debit Credit

Dec. 31 (Click to select)

(Click to select)

(b) The first annual payment on the note. (Round "PV Factor" to 4 decimal places. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date General Journal Debit Credit

Oct. 31 (Click to select)

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rev: 08_13_2011

Worksheet Problem 14-9A Installment notes L.O. C1, P5

Problem 18-8A Manufacturing and income statements; inventory analysis L.O. P2 [The following information applies to the questions displayed below.]

The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company.

Advertising expense $ 32,100 Direct labor $ 683,200 Depreciation expense—Office equipment 9,500 Income taxes expense 238,700 Depreciation expense—Selling equipment 9,800 Indirect labor 57,800 Depreciation expense—Factory equipment 33,300 Miscellaneous production costs 9,100 Factory supervision 109,800 Office salaries expense 60,000 Factory supplies used 8,300 Raw materials purchases 994,000 Factory utilities 43,000 Rent expense—Office space 22,000 Inventories Rent expense—Selling space 26,400 Raw materials, December 31, 2010 153,200 Rent expense—Factory building 79,000 Raw materials, December 31, 2011 180,000 Maintenance expense—Factory equipment 39,200 Goods in process, December 31, 2010 17,200 Sales 4,680,000 Goods in process, December 31, 2011 23,400 Sales discounts 63,700 Finished goods, December 31, 2010 168,300 Sales salaries expense 399,600 Finished goods, December 31, 2011 142,300

Section Break Problem 18-8A Manufacturing and income statements;

inventory analysis L.O. P2

Problem 18-8A Part-1 Required: 1. Prepare the company’s 2011 manufacturing statement. (Input all amounts as positive values. Omit

the "$" sign in your response.)

PLAZA COMPANY Manufacturing Statement

For Year Ended December 31, 2011 Direct materials

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Direct materials used $

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Factory overhead

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Total factory overhead costs

Total manufacturing costs

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Total cost of goods in process

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Cost of goods manufactured $

Worksheet Problem 18-8A Part-1

Problem 18-8A Part-2 2. Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses

and (b) general and administrative expenses. (Input all amounts as positive values. Omit the "$" sign in your response.)

PLAZA COMPANY Income Statement

For Year Ended December 31, 2011

(Click to select) $

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Net sales

Cost of goods sold

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Cost of goods sold

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Operating expenses Selling expenses

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Total selling expenses

General and administrative expenses

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Total general and administrative expenses

Total operating expenses

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Worksheet Problem 18-8A Part-2

Problem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3 [The following information applies to the questions displayed below.]

Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.

a. Purchased raw materials on credit, $220,000. b. Paid $127,500 cash for factory wages.

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c. Paid $15,250 cash to a computer consultant to reprogram factory equipment. d. Materials requisitions record use of the following materials for the month.

Job 136 $ 48,500 Job 137 33,000 Job 138 20,000 Job 139 23,000 Job 140 7,000 Total direct materials 131,500 Indirect materials 21,000 Total materials used $152,500

e. Time tickets record use of the following labor for the month.

Job 136 $ 12,100 Job 137 10,600 Job 138 37,700 Job 139 39,200

Job 140 3,400 Total direct labor 103,000 Indirect labor 24,500 Total $127,500

f. Applied overhead to Jobs 136, 138, and 139. g. Transferred Jobs 136, 138, and 139 to Finished Goods. h. Sold Jobs 136 and 138 on credit at a total price of $545,000. i. The company incurred the following overhead costs during the month (credit Prepaid Insurance for

expired factory insurance).

Depreciation of factory building $ 69,000 Depreciation of factory equipment 36,500 Expired factory insurance 11,000 Accrued property taxes payable 36,000

j. Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Section Break Problem 19-3A Source documents, journal entries, and

accounts in job order cost accounting L.O. P1, P2, P3

Problem 19-3A Part 1 Required: 1. Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your

response.)

Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140

Materials $ $ $ $ $

Labor

Overhead

Total cost $ $ $ $ $

Worksheet Problem 19-3A Part 1

Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your

response. )

General Journal Debit Credit

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d. (Click to select)

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f. (Click to select)

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Worksheet Problem 19-3A Part 2

Problem 19-3A Part 3 3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month

with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these T- accounts and determine the balance of each account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

GENERAL LEDGER ACCOUNTS Raw Materials Inventory

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Bal.

Goods in Process Inventory

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Bal.

Finished Goods Inventory

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Bal.

Factory Payroll

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Bal.

Factory Overhead

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Bal.

Cost of Goods Sold

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Bal.

Worksheet Problem 19-3A Part 3

Problem 19-3A Part 4 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs

equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.)

Reports of Job Costs Goods in Process Inventory

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Balance $

Finished Goods Inventory

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Balance $

Cost of Goods Sold

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Balance $

Worksheet Problem 19-3A Part 4

Problem 21-5AB Allocation of joint costs L.O. C4 [The following information applies to the questions displayed below.]

Bloom Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its efforts.

BLOOM ORCHARDS Income Statement

For Year Ended December 31, 2011

No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 325,000 Ibs. @ $5.50/lb $1,787,500 No. 2: 550,000 Ibs. @ $3.95/lb $2,172,500 No. 3: 900,000 Ibs. @ $0.70/lb $ 630,000 Total sales $ 4,590,000 Costs Tree pruning and care @ $0.60/Ib 195,000 330,000 540,000 1,065,000 Picking, sorting, and grading @ $0.40/Ib 130,000 220,000 360,000 710,000 Delivery costs $0.06/lb 19,500 33,000 54,000 106,500 Total costs 344,500 583,000 954,000 1,881,500 Net income (loss) $1,443,000 $1,589,500 $ (324,000) $ 2,708,500

In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company’s delivery cost records show that $52,500 of the $106,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $54,000 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery.

Section Break Problem 21-5AB Allocation of joint costs L.O. C4

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Problem 21-5AB Part 1 Required: 1. Prepare reports showing cost allocations on a sales value basis to the three grades of peaches.

Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value of each grade. (Round your percentages to 1 decimal place, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Tree pruning and care: Grade Allocated Cost

No. 1 $

No. 2

No. 3

Total $

Picking, sorting, and grading: Grade Allocated Cost

No. 1 $

No. 2

No. 3

Total $

Delivery Costs:

Grade Allocated Cost

No. 1 $

No. 2

No. 3

Total $

Worksheet Problem 21-5AB Part 1

Problem 21-5AB Part 2 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales

value basis. (Input all amounts as positive value. Round your percentages to 1 decimal place, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

BLOOM ORCHARDS Income Statement

For Year Ended December 31, 2011 No. 1 No. 2 No. 3 Combined

(Click to select) $ $ $ $

Costs

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Total costs

(Click to select) $ $ $ $

Worksheet Problem 21-5AB Part 2

Problem 21-2A Activity-based costing L.O. P2 [The following information applies to the questions displayed below.]

We Care is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic’s three cost centers and their cost drivers follow.

Cost Center Cost Cost Driver Driver Quantity

Professional salaries $ 1,900,000 Professional hours 10,000 Patient services and supplies 23,000 Number of patients 500

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Building cost 149,000 Square feet 1,500

The two main surgical units and their related data follow. Service Hours Square Feet* Patients

General surgery 2,600 400 200 Orthopedic surgery 7,400 1,100 300

* Orthopedic surgery requires more space for patients, supplies, and equipment.

Section Break Problem 21-2A Activity-based costing L.O. P2

Problem 21-2A Part 1 Required: 1. Compute the cost per cost driver for each of the three cost centers. (Round your answers to nearest

dollar amount. Omit the "$" sign in your response.)

Cost Center Cost per Driver

Professional salaries $ per hour

Patient services & supplies $ per patient

Building cost $ per sq. ft

Worksheet Problem 21-2A Part 1

Problem 21-2A Part 2 2. Use the results from part 1 to allocate costs from each of the three cost centers to both the general

surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Total

Average cost per patient

General surgery $ $

Orthopedic surgery $ $

Worksheet Problem 21-2A Part 2

Problem 22-6A Analysis of price, cost, and volume changes for contribution margin and net income L.O. P2, A1 [The following information applies to the questions displayed below.]

This year Cairo Company sold 27,000 units of its only product for $19.60 per unit. Manufacturing and selling the product required $112,000 of fixed manufacturing costs and $172,000 of fixed selling and administrative costs. Its per unit variable costs follow.

Material $ 3.20 Direct labor (paid on the basis of completed units) 2.20 Variable overhead costs 0.32 Variable selling and administrative costs 0.12

Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% and will not affect product quality or marketability. Management is considering an increase in the unit sales price to reduce the number of units sold because the factory’s output is nearing its annual output capacity of 32,000 units. Two plans are being considered. Under plan 1, the company will keep the price at the current level and sell the same volume as last year. This plan will increase income because of the reduced costs from using the new material. Under plan 2, the company will increase price by 25%. This plan will decrease unit sales volume by 10%. Under both plans 1 and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the same.

Section Break

Problem 22-6A Analysis of price, cost, and volume

changes for contribution margin and net income L.O. P2, A1

Problem 22-6A Part 1 Required: 1. Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round your

contribution margin ratio to 2 decimal places after converting into percentage and other intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

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Plan 1 $

Plan 2 $

rev: 12_21_2012

Worksheet Problem 22-6A Part 1

Problem 22-6A Part 2 2. Prepare a forecasted contribution margin income statement with two columns showing the expected

results of plan 1 and plan 2. The statements should report sales, total variable costs, contribution margin, total fixed costs, income before taxes, income taxes (40% rate), and net income. (Input all amounts as positive values. Round your contribution margin ratio to 2 decimal place, other intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

CAIRO CO. Forecasted Contribution Margin Income Statement

Plan 1 Plan 2

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(Click to select) $ $