Question

1) On September 1, 2021, Daylight Donuts signed a $180,000, 7%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2022.
Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2021. In recording the payment of the note plus accrued interest at maturity on March 1, 2022, Daylight Donuts would: (Do not round your intermediate calculations.)

2)On November 1, 2021, New Morning Bakery signed a $191,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022.
New Morning Bakery records the appropriate adjusting entry for the note on December 31, 2021. What amount of cash will be needed to pay back the note payable plus any accrued interest on May 1, 2022? (Do not round your intermediate calculations.)

3)The Pita Pit borrowed $209,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022.
In connection with this note, The Pita Pit should report interest expense at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)

4)Universal Travel, Inc. borrowed $491,000 on November 1, 2021, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2022.
In connection with this note, Universal Travel, Inc. should report interest payable at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)

5)In December 2020, Quebecor Printing received magazine subscriptions for 2021 from customers, who paid $490 in cash. What would be the appropriate journal entry for this event in December 2020?

6)Suppose you buy lunch for $15.60 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax? (Do not round intermediate calculations. Round the answers to 2 decimal places.)

7)Union Apparel has sales including sales taxes for the month of $551,200. If the sales tax rate is 6%, what are Union Apparel's sales for the month? (Do not round intermediate calculations.)

8)United Supply has a $35 million liability at December 31, 2021, of which $7 million is payable in each of the next five years. United Supply reports the liability in the balance sheet as a:

9)Reeves Co. filed suit against Higgins, Inc., seeking damages for copyright violations. Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $160,000 to $260,000, with all amounts in the range considered equally likely. How should Higgins report this litigation?

10)At the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2021 were $260 million. Five percent of the units sold were returned in 2021 and repaired or replaced at a cost of $9.0 million. The amount of warranty expense in Angel's 2021 income statement is:

11)Strikers, Inc. sells soccer goals to customers over the Internet. History has shown that 5% of Strikers' goals will need repair under the warranty program. For the year, Strikers has sold 4,100 goals and 47 have been repaired.
If the estimated cost to repair a goal is $120, what would be the Warranty Liability at the end of the year?

12)Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warranty program. The average repair cost is $75 per phone. For 2021, Talks-A-Lot has sold 590 cell phones and has repaired 11 of them as of December 31, 2021. What amount of warranty liability should be reported at December 31, 2021? (Do not round intermediate calculations.)

13)Carpenter Inc. estimates warranty expense at 4% of sales. Sales during the year were $8 million and warranty expenditures were $47,000. What was the balance in the Warranty Liability account at the end of the year?

14)On November 1, Vacation Destinations borrows $1.58 million and issues a six-month, 8% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjusting entry for interest expense at December 31, the end of the reporting period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Enter your answers in dollars, not in millions. Round your answers to the nearest dollar amount.)

15)On September 1, 2021, Allied Moving Corp. borrows $110,000 cash from First National Bank. Allied signs a six-month, 6% note payable. Interest is payable at maturity. Allied's year-end is December 31.
1., 2. & 3. Record the following transactions for the note payable by Allied Moving Corp. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to nearest dollar amount.)

16)On November 1, 2021, Dual Systems borrows $150,000 to expand operations. Dual Systems signs a six-month, 9% promissory note. Interest is payable at maturity. Dual System's year-end is December 31.  
1., 2. & 3. Record the following transactions for the note payable by Dual Systems. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

17)Assume that on July 1, 2021, Togo's Sandwiches issues a $1.91 million, one-year note. Interest is payable at maturity. Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in dollars, not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

18)

The following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31.  

January		26		Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $8.80 million at the bank's prime rate.
March		1		Arranged a six-month bank loan of $350,000 with City Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity.
September		1		Paid the 7% note at maturity.

Record the appropriate entries, if any, on January 26, March 1, and September 1. (Enter your answers in dollars, not in millions. Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

19)Accurate Reports has 50 employees each working 45 hours per week and earning $28 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% of the first $118,500 earned per employee and 1.45% thereafter. Unemployment taxes are 6.20% of the first $7,000 earned per employee.     
1. Compute the total salaries expense, the total withholdings from employee salaries, and the actual payroll payment (salaries payable) for the first week of January. (Round your intermediate and final answers to the nearest dollar amount.)

Total Salaries Expense
Total Withholdings
Actual Direct Deposit

. Compute the total payroll tax expense Accurate Reports will pay for the first week of January. (Round your intermediate and final answers to the nearest dollar amount.)

20)

Midwest Shipping pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the Federal unemployment tax maximum salary of $7,000 in January.

Salaries	$	1,000,000
Federal and state income taxes withheld		130,000
Federal unemployment tax rate		0.80	%
State unemployment tax rate (after FUTA deduction)		5.40	%
Social Security (FICA) tax rate		7.65	%

Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Solution:

1.

In the Books of DayLight Donuts
31-Dec-21	Interest Expense	$          4,200.00
	Interest Payable		$             4,200.00
	( To record the interest acrrued for 4 months = $1050*4)
01-Mar-22	Interest Payable	$          4,200.00
	Interest Expense	$          2,100.00
	Notes Payable	$    1,80,000.00
	Cash		$       1,86,300.00
	(To record the payment of principal and interest)

Workings:
Notes Payable	$      1,80,000.00
Interest	7%
Interest per annum	$          12,600.00
Interest Per month	$            1,050.00

2.

In the Books of New Morning Bakery
31-Dec-21	Interest Expense	$          1,910.00
	Interest Payable		$             1,910.00
	( To record the interest acrrued for 2 months = $955*2)
01-May-22	Interest Payable	$          1,910.00
	Interest Expense	$          3,820.00
	Notes Payable	$    1,91,000.00
	Cash		$       1,96,730.00
	(To record the payment of principal and interest)
Cash paid is $196730 ( Note Payable + Accrued Interest)

Workings:
Notes Payable	$      1,91,000.00
Interest	6%
Interest per annum	$          11,460.00
Interest Per month	$                955.00

3.

In the Books of Pita Pit
31-Dec-21	Interest Expense	$          4,180.00
	Interest Payable		$             4,180.00
	( To record the interest acrrued for 2 months = $2090*2)
Interest Expense recorded at December 31 is $4180 (Interest for two months)

Workings:
Notes Payable	$      2,09,000.00
Interest	12%
Interest per annum	$          25,080.00
Interest Per month	$            2,090.00

4.

In the Books of Universal Travel
31-Dec-21	Interest Expense	$          4,910.00
	Interest Payable		$             4,910.00
	( To record the interest acrrued for 2 months = $2455*2)
Interest Payable recorded at December 31 is $4910 (Interest for two months)

Workings:
Notes Payable	$      4,91,000.00
Interest	6%
Interest per annum	$          29,460.00
Interest Per month	$            2,455.00

5.

In the Books of Quebecor
31-Dec-20	Unearned Subscription Revenues	$              490.00
	Cash		$                 490.00
Cash received for subscription for 2021 will be treated as unearned revenue as it does not pertain to the year 2020

PS: Kindly post mutliple questions induvidually. The first five is solved for you.