Drill 10-D1 Analyzing posting transactions
A form for analyzing posting is on the next page.
INSTRUCTIONS:
1. For each of the following transactions, write the titles of the general ledger and subsidiary
ledger accounts affected by the transaction in Column 2.
2. Place a check mark in Column 3 or 4 to show how the amount for the account in Column 2
will be posted.
Transactions
1. Sold merchandise on account to Juan Cardena, plus sales tax.
2. Recorded cash and credit card sales, plus sales tax.
Drill 10-D1 Analyzing posting transactions (continued)
1
2
3
4
Trans.
Accounts Affected
Posted
Individually to
Accounts
Receivable
Ledger
Amounts not
posted
individually to
any ledger
1.
Accounts Receivable
Accounts Receivable—Juan Cardena
Sales
Sales Tax Payable
2.
Cash
Sales
Sales Tax Payable
3.
Cash
Accounts Receivable
Accounts Receivable—Accent Company
4.
Accounts Receivable
Sales
5.
Accounts Receivable
Accounts Receivable—Kennel Co.
Sales
Sales Tax Payable
Cash
Sales Discount
Accounts Receivable
Accts. Rec.—Forms Co.
Drill 11-D1 Analyzing posting transactions
A form for analyzing posting is on the next page.
INSTRUCTIONS:
1. For each of the following transactions, write the titles of the general ledger and subsidiary
ledger accounts affected by the transaction in Column2.
2. Place a check mark in Column 3, 4, 5, or 6 to show how the amount for the account in
Column 1 will be posted.
Transactions
1. The board of directors declared a dividend.
2. Paid cash on account to Casa Enterprises and took a 2% cash discount.
3. Sold merchandise on account to Adrian Hartley, plus sales tax.
(The form for Drill 11-D1 is on the next page)
Drill 11-D1 Analyzing posting transactions (continued)
1
3
4
5
6
Trans.
Amounts posted individually to
Amounts
not posted
individually
to any
ledger
General
Ledger
Accounts
Payable
Ledger
Accounts
Receivable
Ledger
1.
2.
3.
4.
Purchases Returns and Allowances
Drill 12-D1 Calculating employee total earnings
Information taken from employee time cards is given in the form below.
INSTRUCTIONS:
For each employee, calculate the amount of regular, overtime, and total earnings. Overtime hours
are paid at one and one-half times the regular rate.
Employee
Number
Hours Worked
Regular
Rate
Earnings
Total
Earnings
Regular
Overtime
Regular
Overtime
1
40
1
$6.00
$240.00
$9.00
$249.00
2
40
5
9.00
360.00
67.50
427.50
3
30
0
6.50
195.00
195.00
4
25
0
7.75
193.75
193.75
5
40
4
8.50
340.00
51.00
391.00
Drill 12-D2 Determining payroll tax withholdings
Information taken from a semimonthly payroll register is given in the form below.
INSTRUCTIONS:
1. Use the federal income tax withholding tax tables on pages 353 and 354 in your textbook to
determine the amount of federal income tax that must be withheld for each of the eight
employees. Write the amount in the Federal Income Tax Withholding column.
Employee
Name
Marital
Status
No. of
Withholding
Allowances
Total
Earnings
Federal
Income Tax
Withholding
Social
Security
Tax
Withholding
Medicare
Tax
Withholding
Adams, Winston J.
M
2
$1,370.00
$52.00
$84.94
$19.87
Forte, Peter A.
M
3
1,280.00
26.00
79.36
18.56
Gable, Joanne M.
2
72.54
16.97
Jenkins, Mary A.
M
5
–
78.12
18.27
Nelson, Janice S.
2
89.00
75.02
17.55
Pate, Kimberly N.
1
148.00
89.28
20.88
Sanders, Michael M.
M
3
36.00
86.18
20.16
Drill 13-D1 Analyzing payroll transactions
Payroll information for two businesses is given in the table below.
Business
Total
Earnings
Federal
Income
Tax
Withheld
Employee
Social
Security
Tax
Employee
Medicare
Tax
Employer
Social
Security
Tax
Employer
Medicare
Tax
Fed.
Unempl.
Tax
State
Unempl.
Tax
INSTRUCTIONS:
1. Use the T accounts below to analyze the payroll entry to record payment of a payroll for each
business. Label the amounts for this transaction as (a).
2. Use the T accounts below to analyze the payroll entry to record the employer’s payroll taxes.
Label the amounts for this transaction as (b).
Business A
Business B
Cash
Cash
(a) 6,961.50
(a) 3,288.70
Employee Income Tax Payable
Employee Income Tax Payable
(a) 1,350.00
(a) 590.00
(a) 558.00
(a) 260.40
(a) 130.50
(a) 60.90
Drill 13-D2 Calculating employer payroll taxes
Payroll information taken from a payroll register and employee earnings records is given below.
INSTRUCTIONS:
1. Calculate the amount of earnings subject to unemployment taxes. Unemployment taxes are
owed on the first $7,000.00 of earnings for each employee.
2. Calculate the amount of employer payroll taxes owed for the May 1-15 pay period. Employer
payroll tax rates are as follows: Social Security, 6.2%; Medicare, 1.45%; federal
unemployment, 0.8%; and state unemployment, 5.4%.
Employee Name
Accumulated Earnings
April 30
Total Earnings
For May 1-15
Pay Period
Unemployment
Taxable
Earnings
Blette, Kathryn C.
$4,689.00
$586.00
$586.00
Easton, Phillip W.
3,882.50
427.00
427.00
Goodpast, Sandra V.
8,450.00
1,045.00
.00
Lake, Margaret Y.
5,725.90
Raymond, Peter L.
7,329.00
945.60
Saenz, Raul J.
10,426.00
1,236.00
.00
Williams, Patricia A.
4,107.25
Social Security Tax Payable
Medicare Tax Payable
Unemployment Tax Payable—Federal
Unemployment Tax Payable—State
Drill 14-D1 Calculating estimated uncollectible accounts expense
A form showing summary information for the fiscal period ended December 31 for six
companies of the current year is shown below.
INSTRUCTIONS:
For each of the six companies, calculate the following:
a. Uncollectible accounts expense.
Company
Accounts
Receivable
Account
Balance
Estimated
Uncollectible
Accounts
Balance of
Allowance for
Uncollectible
Accounts before
Adjustment
(a)
Uncollectible
Accounts
Expense
(b)
Balance of
Allowance for
Uncollectible
Accounts after
Adjustment
(c)
Book Value
of Accounts
Receivable
1
$48,700.00
$3,575.00
$132.00 Credit
$3,443.00
$3,575.00
$45,125.00
2
73,900.00
6,481.00
63.00 Credit
6,418.00
6,481.00
67,419.00
3
4
5
54,800.00
2,485.00
2,485.00
2,485.00
52,315.00
Drill 14-D2 Calculating estimated uncollectible accounts expense
INSTRUCTIONS:
On the form below, analyze each entry. For each entry, indicate how each account is affected by
writing one of the following: DR if debited, CR if credit, or NE if no entry is made.
General Ledger
Accounts
Receivable
Ledger
Customer
Account
Transaction
Cash
Accounts
Receivable
Allowance for
Uncollectible
Accounts
Uncollectible
Accounts
Expense
1. Adjusting entry for
uncollectible
accounts expense at
end of fiscal period
NE
NE
CR
DR
NE
2. Wrote off an
uncollectible
3. Collected account
NE
DR
CR
DR
NE
CR
DR
NE
CR
Drill 15-D1 Analyzing adjusting entries
The following chart contains adjustment information related to the preparation of adjusting
entries for three businesses.
Business
Account Title and Balance
End-of-Fiscal-Period Information
A
1.
Merchandise Inventory ………
$148,000.00
Merchandise inventory …………….
$134,000.00
2.
Supplies—Office ………………..
5,750.00
Office supplies inventory ………….
4,200.00
3.
Interest Receivable ……………..
0.00
Accrued interest income ……………
245.00
4.
Prepaid Insurance ………………
1,860.00
Value of prepaid insurance ……….
1,240.00
1.
Merchandise Inventory ………
$182,000.00
Merchandise inventory …………….
$166,000.00
2.
4,680.00
Office supplies inventory ………….
3,460.00
3.
Supplies—Store ………………….
5,930.00
Store supplies inventory …………..
4,320.00
4.
Accumulated Depreciation …
2,520.00
Depreciation expense ………………..
1,260.00
C
1.
Merchandise Inventory ………
$166,500.00
Merchandise inventory …………….
$178,000.00
2.
5,460.00
Office supplies inventory ………….
4,520.00
3.
Supplies—Store ………………….
6,480.00
Store supplies inventory …………..
4,960.00
4.
Federal Income Tax Expense
8,000.00
Federal income tax owed ………….
9,080.00
INSTRUCTIONS:
Analyze the adjustments for each business. List the accounts affected and the amounts for each
of the adjustments. List the account titles in Column 3 and the adjustment amounts in either
Column 4 or 5. The form for this Drill is on the next page.
(The form for Drill 15-D1 is on the next page)
Drill 15-D1 Analyzing adjusting entries (continued)
1
2
3
4
5
Business
Adjustment
Number
Accounts Affected
Adjustment Column
Debit
Credit
A
1.
Income Summary
$14,000.00
Merchandise Inventory
$14,000.00
2.
Supplies Expense—Office
1,550.00
Supplies—Office
1,550.00
3.
Interest Receivable
245.00
Interest Income
245.00
4.
Insurance Expense
620.00
Prepaid Insurance
620.00
B
1.
Income Summary
$16,000.00
Merchandise Inventory
$16,000.00
2.
Supplies Expense—Office
1,220.00
Supplies—Office
3.
Supplies Expense—Store
1,610.00
Supplies—Store
4.
Depreciation Expense
1,260.00
Accumulated Depreciation
1.
Merchandise Inventory
$11,500.00
Income Summary
$11,500.00
2.
Supplies Expense—Office
940.00
Supplies—Office
3.
Supplies Expense—Store
1,520.00
Supplies—Store
4.
Federal Income Tax Expense
1,080.00
Federal Income Tax Payable
Drill 15-D2 Calculating federal income tax
A portion of a federal income tax table is given below.
INSTRUCTIONS:
Calculate the federal income tax expense for each business.
Tax Rate Schedule
Of taxable income (line 30, Form 1120, or line 26, Form 1120-A) is:
Over—
But not over—
Tax is:
Of the amount
over—
$0
$50,000
15%
$0
100,000
335,000
Company
A
B
C
Net income before federal income taxes
$120,000.00
$62,000.00
$400,000.00
Of the amount over
$100,000.00
$50,000.00
$335,000.00
Net income subject to marginal tax rate
$20,000.00
$12,000.00
$65,000.00
Marginal tax rate
39%
25%
34%
Marginal income tax
$22,100.00
Bracket minimum income tax
$22,250.00
Federal income tax expense
$30,050.00
$10,500.00
Drill 16-D1 Classifying a corporation’s revenue, cost, and expense accounts
INSTRUCTIONS:
For each of the accounts in the form below, place a check mark in the column that correctly
classified the account.
Accounts
Operating
Revenue
Contra
Operating
Revenue
Cost
of
Mdse.
Contra
Cost
of
Mdse.
Operating
Expense
Other
Revenue
Other
Expense
1. Advertising Expense
2. Sales
3. Interest Income
4. Salary Expense
5. Sales Returns and Allowances
6. Purchases
7. Depreciation Expense
8. Purchases Discount
9. Interest Expense
10. Sales Discount
11. Uncollectible Accounts Expense
12. Purchases Returns and Allowances
13. Gain on Plant Assets
14. Utilities Expense
15. Cash Short and Over (cash short)
Drill 16-D2 Classifying a corporation’s asset, liability, and stockholders’ equity accounts
INSTRUCTIONS:
For each of the accounts in the form below, place a check mark in the column that correctly
classifies the account.
Accounts
Current
Asset
Contra
Current
Asset
Plant
Asset
Contra
Plant
Asset
Current
Liability
Stock-
holders’
Equity
1. Cash
2. Merchandise Inventory
3. Federal Income Tax Payable
4. Prepaid Insurance
5. Notes Payable
6. Interest Receivable
7. Accounts Payable
8. Notes Receivable
9. Office Equipment
10. Interest Payable
11. Capital Stock
12. Allow. for Uncollectible Accounts
13. Employee Income Tax Payable
14. Dividends Payable
15. Retained Earnings
16. Petty Cash
17. Supplies—Office
18. Medicare Tax Payable
19. Retirement Contributions Payable
20. Accum. Deprec.—Store Equipment