Student Name:
Class:
Date Account Debit Credit
September 30, 2022
Cash
(Collection of notes receivable and interest)
Notes Receivable
41,000,000
41,000,000 <–Correct!
41,000,000
922,500
2,767,500
44,690,000 <–Correct!
October 1, 2021
Cash
Requirement 3:
McGraw-Hill/Irwin
Requirement 1:
Instructor
Notes Payable
Problem 08-02
September 30, 2022
Notes Payable
Cash
PRECISION CASTPARTS
(Issuance of notes payable)
(Payment of notes payable and interest)
Interest Expense
Interest Payable
Interest Receivable
(Interest expense incurred, but not paid)
October 1, 2021
Notes Receivable
Cash
December 31, 2021
Interest Expense
Requirement 2:
(Acceptance of notes receivable)
December 31, 2021
(Interest revenue earned, but not received)
41,000,000$
1
PRECISION CASTPARTS
Given Data P08-02:
October 1, 2021 borrowed for working capital
Promissory note term in years
Interest payable at maturity
Year ends on December 31
Student Name:
Class:
Date Account Debit Credit
1,500,000
375,000
114,750
63,000
McGraw-Hill/Irwin
Instructor
Problem 08-04
VACATION DESTINATIONS
Payroll Entries
February 14
Salaries Expense
Income Tax Payable
Requirement 1:
FICA Tax Payable
Accounts Payable (Retirement Plan)
February 14
Payroll Tax Expense
Accounts Payable (Medical Insurance)
Accounts Payable (Retirement Plan)
Salaries Payable (to balance)
Accounts Payable (Life Insurance)
February 14
Salaries Expense
Requirement 3:
Requirement 2:
FICA Tax Payable
Unemployment Tax Payable
7%
100%
1,500,000$
63,000
Employee contribution to voluntary retirement plan
VACATION DESTINATIONS
Medical and life insurance covered by company
Max employee contribution to retirement plan
Given Data P08-04:
Wages and salaries
Period Ending February 14
Biweekly Payroll Information
Medical insurance premiums paid by employer
Federal and state unemployment tax rate
Medicare tax rate
Social Security tax rate
Federal and state income tax withheld
Life insurance premiums paid by employer
Student Name:
Class:
3,889$ 11,462$ 0.34 «- Correct!
Wayne Enterprises
=
ACME CORPORATION and WAYNE ENTERPRISES
Problem 08-09
McGraw-Hill/Irwin
Instructor
Requirement 1: Current Ratio (in $millions)
ACME Corporation
Current Ratio
Quick Assets
÷
Total Current
Liabilities
=
Acid-Test
Ratio
Requirement 2: Acid-Test Ratio (in $millions)
Total Current
Assets
÷
Total Current
Liabilities
9,784$ 7,708$ 1.27 «- Correct!
Wayne Enterprises
ACME Corporation
ACME Wayne
Corporation Enterprises
2,494$ 541$
– 125
(In $millions)
ACME CORPORATION and WAYNE ENTERPRISES
Given Data P08-09:
Current assets
Cash and cash equivalents
Current investments
Other current assets
Current liabilities
Current debt
Accounts payable
Other current liabilities
Net receivables
Inventory