Question
In: Accounting
1) Mighty Joe company purchases merchcandise for $12,000 on Dec 1, 2017, by issuing a $12,000,...
1) Mighty Joe company purchases merchcandise for $12,000 on Dec 1, 2017, by issuing a $12,000, 10%, 30 day note to the supplier. Record the journal entry for the issuance of the note. Do not forget journal entry descriptions.
2.) Jaxon Company records gross salaries of $50,000 for September 30, 2017. FICA taxes are 8% of gross salaries, the federal unemployment tax rate is 0.6% because the state unemployment tax rate is 5.4%. Federal income tax withholdings amounted to $5,500 and state income tax withholdings amounted to $3,300. Assume all wages are subject to all taxes. Prepare the two journal entries to record the payment of the payroll and the accrual of payroll taxes. Do not forget journal entry descriptions. SHOW YOUR WORK
3)Property taxes for August 1, 2017 through July 31, 2018 was
assessed at $8,400. Property taxes were paid on December 31, 2017.
Record the accrual for September 30, 2017 and the payment made on
December 31, 2017. Do not forget journal entry descriptions. (15
points)
SHOW YOUR CALCULATIONS!
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Palmer Company purchases materials from a foreign supplier on December 1, 2017, with payment of 12,000...
Palmer Company purchases materials from a foreign supplier on
December 1, 2017, with payment of 12,000 FCUs to be made on March
1, 2018. On December 1, 2017, Palmer enters into a forward contract
to purchase 12,000 FCUs on March 1, 2018. Relevant exchange rates
for the FC on various dates are as follows:
Date Spot Rate Forward
Rate (to march 1,2018)
Dec 1, 2017
$2.70
$2,775
Dec 31, 2017
$2.80
$2,900
March
1,2018 $2.95
N/A
Palmer’s...
Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2017, for $544,200...
Mighty Company purchased a 60 percent interest in Lowly Company
on January 1, 2017, for $544,200 in cash. Lowly's book value at
that date was reported as $775,000 and the fair value of the
noncontrolling interest was assessed at $362,800. Any excess
acquisition-date fair value over Lowly's book value is assigned to
trademarks to be amortized over 20 years. Subsequently, on January
1, 2018, Lowly acquired a 20 percent interest in Mighty. The price
of $346,000 was equivalent to 20...
Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2017, for $558,900...
Mighty Company purchased a 60 percent interest in Lowly Company
on January 1, 2017, for $558,900 in cash. Lowly's book value at
that date was reported as $817,500 and the fair value of the
noncontrolling interest was assessed at $372,600. Any excess
acquisition-date fair value over Lowly's book value is assigned to
trademarks to be amortized over 20 years. Subsequently, on January
1, 2018, Lowly acquired a 20 percent interest in Mighty. The price
of $362,000 was equivalent to 20...
Balance Sheets as on 31st Dec 2017 & 31st Dec 2018 31st Dec 2017 31st Dec...
Balance Sheets as on 31st Dec 2017
& 31st Dec 2018
31st Dec 2017
31st Dec 2018
Current Assets:
Cash
$65,000
$80,000
Accounts Receivables
$2,500,000
$4,000,000
Inventory
$1,500,000
$2,500,000
Total Current Assets
$4,065,000
$6,580,000
Fixed Assets:
Buildings
$2,000,000
$3,000,000
Furniture & office equipment
$1,100,000
$1,400,000
Good Will
$6,100,000
$5,700,000
Patents
$1,000,000
$1,100,000
Total Fixed Assets
$10,200,000
$11,200,000
Total Assets
$14,265,000
$17,780,000
Liabilities:
Current Liabilities:
Accounts Payable
$1,200,000
$1,350,000
Notes Payable
$500,000
$550,000
Interest Payable
$110,000
$125,000
Total Current Liabilities
$1,810,000...
combos Company purchases a delivery truck for $12,000 on January 1, 2019. combos expects to use...
combos Company purchases a delivery truck for $12,000 on January
1, 2019. combos expects to use the truck only two years and to sell
it for $4,000. The company’s policy is to use straight-line
depreciation but depreciation in 2019 is not recorded. Rather, the
accountant charges the entire cost to delivery expense in 2019. The
controller discovers the error late in 2020.
REQUIRED:
Provide the 2020 entries to record depreciation and the error
correction and indicate the amounts of the...
Smith Company manufactures lawn mowers. The firm had the following inventories. Jan 1, 2017 Dec 3, 2017 &n
Smith Company manufactures lawn mowers. The firm had
the following inventories.
Jan
1, 2017 Dec 3, 2017
Finished
goods $142,000 $ 92,000
Work
in
process $262,000 $426,000
Materials $114,000 $
90,000
The
following additional manufacturing data pertains to operations.
Material
purchased $150,000 Property
Taxes
Factory $
7,500
Direct
labor $400,000 Utilities-Factory $15,000
Depreciation-Factory
Equip $ 25,000 Insurance-Factory $ 4,500
Factory
Supervisor
Salaries $227,500 Selling
and Admin Expense $200,000
Alex Company applies manufacturing overhead at the rate of 60
percent of direct-labor cost.
Required:
Compute
the following amounts for the year of 2017.
A. Alex Company’s direct materials cost.
B. Alex Company’s total manufacturing...
Smith Company manufactures lawn mowers. The firm had the following inventories. Jan 1, 2017 Dec 3, 2017 &n
Smith Company manufactures lawn mowers. The firm had
the following inventories.
Jan
1, 2017 Dec 3, 2017
Finished
goods $142,000 $ 92,000
Work
in
process $262,000 $426,000
Materials $114,000 $
90,000
The
following additional manufacturing data pertains to operations.
Material
purchased $150,000 Property
Taxes
Factory $
7,500
Direct
labor $400,000 Utilities-Factory $15,000
Depreciation-Factory
Equip $ 25,000 Insurance-Factory $ 4,500
Factory
Supervisor
Salaries $227,500 Selling
and Admin Expense $200,000
Alex Company applies manufacturing overhead at the rate of 60
percent of direct-labor cost.
Required:
Compute
the following amounts for the year of 2017.
A. Alex Company’s direct materials cost.
B. Alex Company’s total manufacturing...
On July 1, 2017, Blue Corporation purchased Crane Company by paying $225,000 cash and issuing a...
On July 1, 2017, Blue Corporation purchased Crane Company by
paying $225,000 cash and issuing a $168,750 note payable to Jay
Crane. At July 1, 2017, the balance sheet of Crane Company was as
follows.
Cash
$26,700
Accounts payable
$219,500
Accounts receivable
89,700
Stockholders’ equity
219,200
Inventory
122,700
$438,700
Land
31,500
Buildings (net)
71,500
Equipment (net)
74,900
Trademarks
21,700
$438,700
The recorded amounts all approximate current values except for land
(fair value of $58,100), inventory (fair value of $131,500), and...
Joe borrowed $20,000 from Buddy Bank by issuing a 10% three-year note. Joe agreed to repay...
Joe borrowed $20,000 from Buddy Bank by issuing a 10% three-year
note. Joe agreed to repay the principal and interest by making
annual payments in the amount of $8,042. Based on this information,
what is the amount of the interest expense associated with the
second payment? (Round your answer to the nearest dollar.)
On January 1, 2017, Gillettey Company purchases an investment in Buffalo, Inc., a company whose stock...
On January 1, 2017, Gillettey Company purchases an investment in
Buffalo, Inc., a company whose stock trades over the counter, for
$2,700,000, representing 20% of the book value of Buffalo. During
the year, Buffalo reports a net income of $942,000 and pays cash
dividends of $294,000. The fair value of Buffalo’s stock on
December 31, 2017, is $15,000,000. Gillettey has a calendar
year-end. a. What amount does Gillettey report on its 2017 balance
sheet for its investment in Buffalo, if...
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