Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 1.5BP
Tar Heel Corporation provides the following information at the end of 2018.
Prepare financial statements (LO1–3)
Salaries payable to workers at the end of the year | $ 3,300 |
Advertising expense for the year | 10,400 |
Building that has been purchased | 80,000 |
Supplies at the end of the year | 4,600 |
Retained earnings | 40,000 |
Utility expense for the year | 6,000 |
Note payable to the bank | 25,000 |
Service revenue earned during the year | 69,400 |
Salary expense for the year | 26,700 |
Accounts payable to suppliers | 7,700 |
Dividends paid to shareholders during the year Common stock that has been issued, including | ( ? ) |
$6,000 that was issued this year | 27,000 |
Cash remaining | 5,200 |
Interest expense for the year | 2,100 |
Accounts receivable from customers | 13,200 |
Required:
Prepare the income statement, statement of stockholders’ equity, and
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1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: Salaries:
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Total $1,185,000
Deductions:
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Total $409,960
Tax rates assumed: Social security, 6% Medicare, 1.5%State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6%
Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December…
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