CHAPTER 11
SOLUTIONS TO PROBLEMS: SET B
PROBLEM 11-1B
(a) Jan. 1 Cash ……………………………………………………. 30,000
Notes Payable ……………………………….. 30,000
5 Cash ……………………………………………………. 11,130
Sales Revenue ($11,130 ÷ 106%) …….. 10,500
Sales Taxes Payable
($11,130 – $10,500) …………………….. 630
25 Cash ……………………………………………………. 16,536
Sales Revenue ($16,536 ÷ 106%) …….. 15,600
Sales Taxes Payable
($16,536 – $15,600) …………………….. 936
(b) (1) Jan. 31 Interest Expense …………………………... 150
Interest Payable
PROBLEM 11-1B (Continued)
(c) Current liabilities
Notes payable …………………………………………………… $30,000
Accounts payable ……………………………………………… 35,000
Unearned service revenue ($12,000 – $8,000) ……… 4,000
PROBLEM 11-2B
(a) Jan. 2 Inventory ………………………………………….. 20,000
Accounts Payable ………………………. 20,000
Feb. 1 Accounts Payable …………………………….. 20,000
Notes Payable ……………………………. 20,000
Mar. 31 Interest Expense
($20,000 X 12% X 2/12) …………………… 400
Interest Payable …………………………. 400
Apr. 1 Notes Payable …………………………..………. 20,000
Interest Payable ………………………………… 400
Cash ………………………………………….. 20,400
PROBLEM 11-2B (Continued)
(b)
Notes Payable
4/1 20,000
10/1 40,000
2/1 20,000
7/1 40,000
12/1 25,000
12/31 Bal. 25,000
Interest Payable
4/1 400
10/1 1,000
3/31 400
9/30 1,000
12/31 250
12/31 Bal. 250
3/31 400
9/30 1,000
12/31 250
12/31 Bal. 1,650
(a) OTTO DRUG STORE
Payroll Register
For the Week Ended February 15, 2017
Earnings
Deductions
Employee
Hours
Regular
Over-
time
Gross
Pay
FICA
Federal
Income
Tax
State
Income
Tax
United
Fund
Total
Net Pay
Salaries and
Wages
Expense
L. Grimmett
A. Bly
Totals
490.00
37.49
51.00
36.00
141.00
13.80
14.70
58.02
5.00
5.00
20.00
M. Dingler
D. Patel
39
42
468.00
480.00
0
36.00
468.00
516.00
35.80
39.47
34.00
20.00
14.04
15.48
0
10.00
83.84
84.95
384.16
431.05
468.00
516.00
PROBLEM 11-3B (Continued)
(b) Feb. 15 Salaries and Wages Expense …………. 1,934.00
FICA Taxes Payable ……………….. 147.95
Federal Income Taxes
Payable ………………………………. 141.00
State Income Taxes Payable ……. 58.02
United Fund Payable ………………. 20.00
Salaries and Wages Payable …… 1,567.03
(c) Feb. 16 Salaries and Wages Payable ………….. 1,567.03
Cash ……………………………………… 1,567.03
PROBLEM 11-4B
(a) Jan. 10 Union Dues Payable …………………. 200
Cash …………………………………. 200
12 FICA Taxes Payable ………………….. 540
Federal Income Taxes Payable …… 1,100
Cash …………………………………. 1,640
15 U.S. Savings Bonds Payable ……… 300
Cash …………………………………. 300
PROBLEM 11-4B (Continued)
(b) 1. Jan. 31 Payroll Tax Expense …………………… 5,817
FICA Taxes Payable
($42,000 X 7.65%) ………………… 3,213
Federal Unemployment Taxes
Payable ($42,000 X .8%) ………. 336
PROBLEM 11-5B
(a) Salaries and Wages Expense …………………………... 390,000
FICA Taxes Payable ………………………………….. 26,735*
Federal Income Taxes Payable ………………….. 78,000
(b) Payroll Tax Expense ………………………………………… 29,705
FICA Taxes Payable ………………………………….. 26,735
(c)
Employee
Wages,
Tips, Other
Compensation
Federal
Income
Tax
Withheld
State
Income
Tax
Withheld
FICA
Wages
FICA Tax
Withheld
(1) $50,000 X 3%.
(2) $24,000 X 3%.
A. Chavez
$50,000
$18,300
$1,500 (1)
$50,000
$3,825