Student Name:
Class:
National Fargo
Locust Bank Bank
1.
May 19 Jul 8 Nov 28
90 120 60
Aug 17 Nov 5 Jan 27
Correct! Correct! Correct!
$35,000 $80,000 $42,000
10% 9% 8%
90/360 120/360 60/360
Interest due at maturity:
$875 $2,400 $560
Accrued interest on Fargo note at end of 2012:
$560
33/60
$308
Correct!
Interest on Fargo note for 2013:
$560
27/60
$252
Correct!
Date Account Titles Debit Credit
2012
Apr 20 40,250
40,250 «- Correct!
May 19 40,250
5,250 «- Correct!
35,000 «- Correct!
Jul 8 80,000
80,000 «- Correct!
Aug 17 875
35,000
35,875 «- Correct!
Notes Payable – Locust
Cash
Notes Payable – National
Merchandise Inventory
Accounts Payable – Locust
Accounts Payable – Locust
Cash
Total interest for note
Fraction of term in 2013
Interest expense in 2013
Total interest for note
Fraction of term in 2012
Accrued interest expense
Principal of the note
Annual interest rate
Fraction of year
Interest expense
Problem 11-01A
McGraw-Hill/Irwin
Instructor
Purchased merchandise on credit.
Schedule
TYRELL CO.
General Journal
TYRELL CO.
Maturity dates:
Term of the note (in days)
Date of the note
Maturity date
Paid $5,250 cash and gave a 90-day, 10% note to extend due date on account.
Borrowed cash with a 120-day, 9% note.
Paid note with interest.
Interest Expense
Notes Payable – Locust
Cash
Student Name:
Class:
Problem 11-01A
McGraw-Hill/Irwin
Instructor
Nov 5 2,400
80,000
82,400 «- Correct!
Nov 28 42,000
42,000 «- Correct!
Dec 31 308
308 «- Correct!
2013
Jan 27 252
42,000
308
42,560 «- Correct!
Interest Expense
Notes Payable – Fargo Bank
Interest Payable
Cash
Notes Payable – Fargo Bank
Interest Expense
Interest Payable
Borrowed cash with 60-day, 8% note.
Accrued interest on note payable.
Paid note with interest.
Paid note with interest.
Interest Expense
Notes Payable – National Bank
Cash
Cash
2012
Apr 20 40,250$
May 19
90
10%
5,250$
35,000$
Jul 8
120
9.0%
80,000$
? ?
? ?
Nov 28
60
8%
42,000$
42,000$
Dec 31
?
2013
? ?
Check figures:
(2) Locust 875$
(3) 308$
(4) 252$
accrued on note to Fargo Bank
Paid note to Fargo Bank at maturity
Term in days
Annual interest
Cash borrowed
Face value
Entered adjusting entry for interest
Annual interest
Amount of note
Paid note to Locust at maturity
Paid note to National Bank at maturity
Signed interest-bearing note from Fargo Bank
Annual interest
Cash paid
Balance of note
Borrowed from National Bank
Term in days
TYRELL CO.
Given Data P11-01A:
Credit purchase from Locust
Replaced Locust payable with note
Term in days
Student Name:
Class:
1.
Dahlia Trey Kiesha Chee Total
$110,100 $110,100 $110,100 $110,100
109,000 36,650 7,100 1,050
$1,100 $73,450 $103,000 $109,050
Correct! Correct! Correct! Correct!
$2,000 $900 $450 $400
1,100 900 450 400
6.20% 6.20% 6.20% 6.20%
$68.20 $55.80 $27.90 $24.80 $176.70
Correct! Correct! Correct! Correct! Correct!
2.
Dahlia Trey Kiesha Chee Total
$2,000 $900 $450 $400
1.45% 1.45% 1.45% 1.45%
$29.00 $13.05 $6.53 $5.80 $54.38
Correct! Correct! Correct! Correct! Correct!
3.
Dahlia Trey Kiesha Chee Total
$68.20 $55.80 $27.90 $24.80 $176.70
Correct! Correct! Correct! Correct! Correct!
4.
Dahlia Trey Kiesha Chee Total
$29.00 $13.05 $6.53 $5.80 $54.38
Correct! Correct! Correct! Correct! Correct!
5.
Dahlia Trey Kiesha Chee Total
$7,000 $7,000 $7,000 $7,000
109,000 36,650 7,100 1,050
$0 $0 $0 $5,950
Correct! Correct! Correct! Correct!
2,000$ 900$ 450$ 400$
0 0 – 400
0.8% 0.8% 0.8% 0.8%
$0.00 $0.00 $0.00 $3.20 $3.20
Tax rate
Social Security tax
Amount subject to tax
Earned this week
Subject to tax
Tax rate
FUTA tax
Each employee‘s FICA withholdings for Medicare (no limits):
Employer’s FICA taxes for Social Security:
Employer’s FICA taxes for Medicare:
Employer’s FUTA taxes:
Instructor
Payroll
PALOMA CO.
Each employee‘s FICA withholdings for Social Security:
Earned this week
Tax rate
Medicare tax
Maximum base
Earned through 8/18
Amount subject to tax
Maximum base
Earned through 8/18
Problem 11-02A
McGraw-Hill/Irwin
Earned this week
Subject to tax
Student Name:
Class:
Instructor
Problem 11-02A
McGraw-Hill/Irwin
6.
Dahlia Trey Kiesha Chee Total
$0 $0 $0 $400
2.15% 2.15% 2.15% 2.15%
$0.00 $0.00 $0.00 $8.60 $8.60
Correct! Correct! Correct! Correct! Correct!
7.
Dahlia Trey Kiesha Chee Total
$2,000.00 $900.00 $450.00 $400.00 $3,750.00
(68.20) (55.80) (27.90) (24.80) (176.70)
(29.00) (13.05) (6.53) (5.80) (54.38)
(284.00) (145.00) (39.00) (30.00) (498.00)
(30.00) (30.00) (30.00) (30.00) (120.00)
$1,588.80 $656.15 $346.57 $309.40 $2,900.92
Correct! Correct! Correct! Correct! Correct!
8.
Dahlia Trey Kiesha Chee Total
2,000.00$ 900.00$ 450.00$ 400.00$ 3,750.00$
68.20 55.80 27.90 24.80 176.70
29.00 13.05 6.53 5.80 54.38
0.00 0.00 0.00 3.20 3.20
0.00 0.00 0.00 8.60 8.60
30.00 30.00 30.00 30.00 120.00
160.00 72.00 36.00 32.00 300.00
$2,287.20 $1,070.85 $550.43 $504.40 $4,412.88
Correct! Correct! Correct! Correct! Correct!
Take-home pay
Subject to tax (from 5)
Tax rate
Health insurance
Pension contribution (8%)
Gross earnings
Less:
FICA Social Security tax
Total payroll expense
Gross earnings
Plus:
FICA Social Security taxes
FICA Medicare taxes
FUTA tax
SUTA tax
The employer’s SUTA taxes:
Each employee‘s net (take-home) pay:
FICA Medicare taxes
Withholding taxes
Health insurance
Employer’s total payroll-related expense for each employee:
SUTA tax
Tax Rate Applied to
6.20% First 110,100$
1.45% Gross pay
0.80% First 7,000
2.15% First 7,000
Gross
Pay Current Week
through Gross Income Tax
Name 8/18 Pay Withholding
109,000$ 2,000$ 284$
36,650 900 145
7,100 450 39
1,050 400 30
60$
50%
8%
Check figures:
(3) 176.70$
(4) 54.38$
(5) 3.20$
(7) Total net pay 2,900.92$
Percentage of gross earnings contributed
by employer to pension fund
Chee
Kiesha
Dahlia
Weekly health insurance premium
Percentage on insurance premium paid by company
PALOMA CO.
Given Data P11-02A:
SUTA
FUTA
FICA-Medicare
FICA-Social Security
Trey