On January 1, 2025, the ledger of Sunland Company contained these liability accounts.Accounts Payable$43,300Sales Taxes Payable7,400Unearned Service Revenue19,800During January, the following selected transactions occurred.Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note.5 Sold merchandise for cash totaling $5,512, which includes 6% sales taxes.12 Performed services for customers who had made advance payments of $11,800. (Credit Service Revenue.)14 Paid state treasurer's department for sales taxes collected in December 2024, $7,400.20Sold 580 units of a new product on credit at $48 per unit, plus 5% sales tax.During January, the company's employees earned wages of $82,000. Withholdings related to these wages were $6,273 for FICA$5,057 for federal income tax, and $1,517 for state income tax. The company owed no money related to these earnings for federal orstate unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded forwages or payroll tax expense as of January 31.

Sunland Company Journal Entries for January 2025Here are the journal entries for Sunland Company's…

Answered: On January 1, 2025, the ledger of…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 5AP

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 2. Issued Check No. 410 for 3,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 27,046, in payment of 9,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees earnings of December13: social security tax, 4,632; Medicare tax, 1,158; state unemployment tax, 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020, in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees earnings of December27: social security tax, 4,668; Medicare tax, 1,167; state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3,400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries,1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts Payable $44,600 Sales Taxes Payable 8,700 Unearned Service Revenue 21,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,700. 20 Sold 710 units of a new product on credit at $54 per unit, plus 5% sales tax. During January, the company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $5,200 for federal income tax, and $1,560 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume…
On January 1, 2022, the ledger of Pharoah Company contained these liability accounts. Accounts Payable $44,200 Sales Taxes Payable 8,300 Unearned Service Revenue 20,700 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,678, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,100. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,300. 20 Sold 670 units of a new product on credit at $55 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $68,000. Withholdings related to these wages were $5,202 for Social Security (FICA), $5,093 for federal income tax, and $1,528 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax.…
On January 1, 2027, Wildhorse Company's accounting records contained these liability accounts. Accounts Payable $43,600 Sales Taxes Payable 7,700 Unearned Service Revenue 20,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,890, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,800. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2026, $7,700. 20 Sold 610 units of a new product on credit at $45 per unit, plus 6% sales tax. During January, the company's employees earned wages of $73,200. Withholdings related to these wages were $5,600 for FIC. $5,229 for federal income tax, and $1,569 for state income tax. The company owed no money related to these earnings for fede state unemployment tax. Assume that wages earned during January will be paid during…
On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts Payable $55,400 Sales Taxes Payable 9,000 Unearned Service Revenue 15,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $25,200 in cash from Apex Bank on a 3-month, 5%, $25,200 note. 5 Sold merchandise for cash totaling $6,466, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,000. 20 Sold 700 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for FICA, $5,150 for federal income tax, and $1,550 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages…
On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts Payable $55,400 Sales Taxes Payable 9,000 Unearned Service Revenue 15,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $25,200 in cash from Apex Bank on a 3-month, 5%, $25,200 note. 5 Sold merchandise for cash totaling $6,466, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,000. 20 Sold 700 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for FICA, $5,150 for federal income tax, and $1,550 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages…
On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable $44,000 Sales Taxes Payable 8,100 Unearned Service Revenue 20,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,100. 20 Sold 650 units of a new product on credit at $46 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $96,000. Withholdings related to these wages were $7,344 for Social Security (FICA), $5,086 for federal income tax, and $1,526 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax.…
The following items were selected from among the transactions completed by Shin Co. during the current year: Jan. 10 Purchased merchandise on account from Beckham Co., $420,000, terms n/30. Feb. 9 Issued a 30-day, 6% note for $420,000 to Beckham Co., on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed $240,000 from Verity Bank, issuing a 45-day, 5% note. June 1 Purchased tools by issuing a $312,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 5%. 15 Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $240,000. (Journalize both the debit and credit to the notes payable account.) July 30 Paid Verity Bank the amount due on the note of June 15. 30 Paid Rassmuessen Co. the amount due on the note of June 1. Dec. 1 Purchased office equipment from Lambert Co. for $700,500 paying $160,500 and issuing a series of ten 5% notes for $54,000…
On January 1, 2022, the ledger of Sheridan Company contains these liability accounts. Accounts Payable $50,500 Sales Taxes Payable 8,300 Unearned Service Revenue 15,500 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2021 ($8,300). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $12,096, which includes 8% sales taxes. 1. Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7%…

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