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Question
Wade Industries reported the following information in its accounting records on December 31, 2015:
| Gross salaries earned by employees (December 2931) | $7,200 |
| Income taxes withheld from employees (December 2931) | 1,100 |
| FICA taxes withheld from employees (December 2931) | 420 |
| Net payment to employees (made on December 31) | $5,680 |
The employees were paid $5,680 on December 31, 2015, but the withholdings have not yet been remitted nor have the matching employer FICA contributions.
Required:
Part a. Compute the total payroll costs relating to the period from December 2931. (Assume $560 in total unemployment taxes.)
Part b. Show the accounting equation effects and give the journal entries on December 31 to adjust for salaries and wages relating to December 2931, 2015.
Part c. Show the accounting equation effects and give the journal entries on December 31 to adjust for payroll taxes relating to December 2931, 2105.
Answer
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Related questions
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B) $2,000.
C) $5,000.
D) $6,000.
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$14,500 Net cash provided by investing activities
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Q:
Cash flows from financing activities:
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Which of the following represent cash outflows from financing activities?
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Assume a company uses the indirect method to prepare its statement of cash flows. If Inventory decreases and Unearned Revenue increases during an accounting period, what does the company do with the changes in these accounts to calculate cash flows from operating activities?
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Q:
Which of the following statements about calculation of cash flows from operating activities under the indirect method is correct?
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What is the starting point for calculating cash flows from operations when the indirect method is used?
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Q:
Cash flows from financing activities include all of the following except:
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The reporting of financing activities is identical under the indirect and direct methods for the statement of cash flows on the statement of cash flows.
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Use the information above to answer the following question. What is the depreciation expense for 2016?
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Which of the following statements about straight-line depreciation is correct?
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Q:
Which of the following is not an amount that is needed to calculate straight-line depreciation?
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Q:
Which of the following statements most appropriately describes the purpose of depreciating a long-lived tangible asset?
A) To indicate how the asset has physically deteriorated
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Your company buys a computer system for $3 million and pays the vendor $200,000 to install the computer system. Your company should record:
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Under the cost principle, a company capitalizes:
A) all ordinary repair expenditures incurred in the use of an asset.
B) any interest incurred in borrowing money to help pay for asset acquisitions.
C) all reasonable and necessary costs of acquiring an asset and preparing it for use.
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Q:
The following information was summarized from the adjusted trial balance of Reliance Yacht Repair, Inc. as of September 30, 2015, the end of the companys fiscal year. Accounts Payable
$1,500 Accounts Receivable
6,000 Accumulated DepreciationEquipment
2,000 Cash
9,420 Common Stock
9,300 Equipment
4,000 Insurance Expense
500 Interest Expense
80 Notes Payable (long-term)
2,500 Notes Receivable (short-term)
5,500 Prepaid Rent
500 Retained Earnings
3,200 Service Revenue
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1,500 Supplies Expense
2,500 Unearned Revenue
2,000 Utilities Expense
1,500 Required:
Part a. Prepare the closing entry for the company for the year ended September 30, 2015.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entry, and then determine the ending balance.
Part c. Prepare a post-closing trial balance at September 30, 2015.
Q:
On December 31, 2016, Ditka Inc. had Retained Earnings of $267,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $168,100 and interest revenue of $81,300. The company used supplies in the amount of $87,900, advertising expenses were $16,400, salaries and wages totaled $18,300, and income tax expense was calculated as $13,700. During the year, the company declared and paid dividends of $6,000.
Required:
Part a. Prepare the closing entries dated December 31, 2016.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance.