Student Name:
Class:
Date Account Debit Credit
(Collection of notes receivable and interest)
Interest Payable
Interest Expense
Interest Receivable
Notes Receivable
Interest Revenue
(Payment of notes payable and interest)
September 30, 2019
Cash
Cash
Requirement 3:
41,000,000
41,000,000 <–Correct!
922,500
922,500 <–Correct!
(Interest revenue earned, but not received)
December 31, 2018
(Issuance of notes payable)
Instructor
Notes Payable
Problem 08-02
Interest Revenue
PRECISION CASTPARTS
October 1, 2018
Cash
McGraw-Hill/Irwin
Requirement 1:
Interest Receivable
(Acceptance of notes receivable)
October 1, 2018
Notes Receivable
Cash
December 31, 2018
Interest Expense
Requirement 2:
Interest Payable
(Interest expense incurred, but not paid)
41,000,000$
PRECISION CASTPARTS
Given Data P08-02:
October 1, 2018 borrowed for working capital
Interest payable at maturity
Year ends on December 31
Promissory note term in years
Student Name:
Class:
Date Account Debit Credit
FICA Tax Payable
Accounts Payable (Retirement Plan)
Salaries Payable (to balance)
Accounts Payable (Retirement Plan)
Accounts Payable (Life Insurance)
1,500,000
375,000
100,500 <–Correct!
31,500
207,750 <–Correct!
114,750
FICA Tax Payable
Requirement 1:
Requirement 3:
Requirement 2:
McGraw-Hill/Irwin
Instructor
February 14
Payroll Tax Expense
Accounts Payable (Medical Insurance)
Problem 08-04
VACATION DESTINATIONS
Payroll Entries
February 14
Salaries Expense
February 14
Salaries Expense
Income Tax Payable
Unemployment Tax Payable
7%
100%
1,500,000$
63,000
Given Data P08-04:
Wages and salaries
Period Ending February 14
Biweekly Payroll Information
Employee contribution to voluntary retirement plan
VACATION DESTINATIONS
Medical and life insurance covered by company
Max employee contribution to retirement plan
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:
Current Ratio
Quick Assets
÷
Total Current
Liabilities
=
Acid-Test
Ratio
Requirement 2: Acid-Test Ratio (in $millions)
Total Current
Assets
÷
Total Current
Liabilities
=
ACME CORPORATION and WAYNE ENTERPRISES
Problem 08-09
McGraw-Hill/Irwin
Instructor
Requirement 1: Current Ratio (in $millions)
ACME Wayne
Corporation Enterprises
2,494$ 541$
– 125
Current assets
Cash and cash equivalents
Current investments
(In $millions)
ACME CORPORATION and WAYNE ENTERPRISES
Given Data P08-09:
Net receivables
Inventory
Other current assets
Current liabilities
Current debt
Accounts payable and accrued liabilities
Other current liabilities