Weygandt, Accounting Principles, 12e
Chapter Eleven
Solutions to Challenge Exercises
Challenge Exercise 11-1 – Solution
(a) Oct. 31 Cash …………………………………………………………………. 360,000
Unearned Subscription Revenue ……………………. 360,000
(12,000 X $30)
Challenge Exercise 11-2 – Solution
(a) Net pay = Gross pay – FICA taxes – Federal income tax – State income tax
(b) Salaries and Wages Expense ……………………………………………………. 2,000
FICA Taxes Payable …………………………………………………………. 153
(c) Salaries and Wages Payable …………………………………………………….. 1,464
Cash ………………………………………………………………………………. 1,464
(d) Payroll Tax Expense ………………………………………………………………… 277