Green Day Hardware Company's payroll for November 2008 is summarized below

E13-9 (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2008 is summarized below:

Unemployment Tax
Payroll Wages Due FICA Federal State
Factory $120,000 $120,000 $40,000 $40,000
Sales 44,000 32,000 4,000 4,000
Admin 36,000 36,000 ------ ------
Total $200,000 $188,000 $44,000 $44,000

At this point in the year some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $97,500 and 4.45% in excess of $97,500. Of the $188,000 wages subject to FICA tax, $20,000 is in excess of $97,500 related to the sales wages. Federal unemployment tax rate is .8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales and $6,000 for administrative.

Instructions
a) Prepare a schedule showing the employers total cost of wages for November by function. (Round all computations to the nearest dollar)
b) Prepare journal entries to record the factory, sales, and administrative payrolls including the employers payroll taxes.

Click here for the solution: Green Day Hardware Company's payroll for November 2008 is summarized below

(Case-It Co) The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010

PR 6-1A The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010:

Cash $37,700 Sales Returns and Allowances $37,800
Accounts Receivable 111,600 Sale Discounts 19,800
Merchandise Inventory 180,000 Cost of Merchandise Sold 1,926,000
Office Supplies 5,000 Sales Salaries Expense 378,000
Prepaid Ins. 12,000 Advertising Expense 50,900
Office Equipment 115,200 Depreciation Exp - Store Equip 8,300
Accumulated Depreciation - Office Equip 49,500 Misc Selling Expense 2,000
Store Equipment 311,500 Office Salaries Expense 73,800
Accumulated Depreciation - Store Equip 87,500 Rent Expense 39,900
A/P 48,600 Insurance Expense 22,950
Salaries Payable 3,600 Depreciation Expense - Office Equip 16,200
Note Payable (final payment due 2025) 54,000 Office Supplies Expense 1,650
Gina Hennessy, Capital 454,800 Misc Admin Exp 1,900
Gina Hennessy, Drawing 45,000 Interest Expense 4,400
Sales 2,703,600

1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $8,000
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report form and account form balance sheets differ.

Click here for the solution: The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010

Green Mountain Water Testing Service was established on November 16, 2012

PR 5-4A (Purchases and cash payments journals; accounts payable and general ledgers) Green Mountain Water Testing Service was established on November 16, 2012. Green Mountain uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants in streams, lakes, and ponds. Transactions related to purchases and cash payments during the remainder of November are as follows:

Nov. 16. Issued Check No. 1 in payment of rent for the remainder of November, $1,700.
16. Purchased field supplies on account from Hydro Supply Co., $4,380.
16. Purchased field equipment on account from Test-Rite Equipment Co., $16,900.
17. Purchased office supplies on account from Best Office Supply Co., $375.
19. Issued Check No. 2 in payment of field supplies, $2,560, and office supplies, $300.
Post the journals to the accounts payable subsidiary ledger.
23. Purchased office supplies on account from Best Office Supply Co., $580.
23. Issued Check No. 3 to purchase land, $45,000.
24. Issued Check No. 4 to Hydro Supply Co. in payment of invoice, $4,380.
26. Issued Check No. 5 to Test-Rite Equipment Co. in payment of invoice, $16,900.
Post the journals to the accounts payable subsidiary ledger.
30. Acquired land in exchange for field equipment having a cost of $8,000.
30. Purchased field supplies on account from Hydro Supply Co., $5,900.
30. Issued Check No. 6 to Best Office Supply Co. in payment of invoice, $375.
30. Purchased the following from Test-Rite Equipment Co. on account: field supplies, $900, and field equipment, $3,700.
30. Issued Check No. 7 in payment of salaries, $22,400.
Post the journals to the accounts payable subsidiary ledger.

Instructions
1. Journalize the transactions for November. Use a purchases journal and a cash payments journal, similar to those illustrated in this chapter, and a two-column general journal. Use debit columns for Field Supplies, Office Supplies, and Other Accounts in the purchases journal. Refer to the following partial chart of accounts:
11 Cash 19 Land
14 Field Supplies 21 Accounts Payable
15 Office Supplies 61 Salary Expense
17 Field Equipment 71 Rent Expense
At the points indicated in the narrative of transactions, post to the following accounts in the accounts payable subsidiary ledger:
Best Office Supply Co.
Hydro Supply Co.
Test-Rite Equipment Co.
2. Post the individual entries (Other Accounts columns of the purchases journal and the cash payments journal and both columns of the general journal) to the appropriate general ledger accounts.
3. Total each of the columns of the purchases journal and the cash payments journal, and post the appropriate totals to the general ledger. (Because the problem does not include transactions related to cash receipts, the cash account in the ledger will have a credit balance.)
4. Sum the balances of the accounts payable subsidiary ledger.
5. Why might Green Mountain consider using a subsidiary ledger for the field equipment?

Check: 1. Total cash payments, $93,615

Click here for the solution: Green Mountain Water Testing Service was established on November 16, 2012

At the beginning of the 2010 school year, Britney Logan decided to prepare a cash budget for the months of September, October, November, and December

At the beginning of the 2010 school year, Britney Logan decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the soring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

Cash balance, September 1(from a summer job) $7,000
Purchase season football tickets in September 100
Additional entertainment for each month 250
Pay fall semester tuition on September 3 3,800
Pay rent at the beginning of each month 350
Pay for food each month 200
Pay apartment deposit on September 2(to be returned Dec 15) 500
Part-time job earnings each month (net of taxes) 900

a. Prepare a cash budget for September, October, November, and December.
b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
c. What are the budget implications for Britney Logan?

Click here for the solution: At the beginning of the 2010 school year, Britney Logan decided to prepare a cash budget for the months of September, October, November, and December

Tiana Shar, the controller for Bondi Furniture Company, is in the process of analyzing the overhead costs for the month of November

Tiana Shar, the controller for Bondi Furniture Company, is in the process of analyzing the overhead costs for the month of November. She has gathered the following data for the month. Labor: Direct Labor Hours Job 77: 3,500 Job 78: 3,000 Job 79: 2,000 Labor Cost: Direct-Labor Wages: $204,000 Indirect-Labor Wages: 15,000 Supervisory Salaries:6,000 Material: Inventories, November 1: Raw Materials and Supplies: $10,500 Work in Progress (job 77): 54,000 Finished goods: 112,500 Purchases of raw material and supplies: Raw Material: $135,000 Supplies (indirect material): 15,000 Direct material and Supplies requisitioned for production Job 77: $45,000 Job 78: 37,500 Job 79: 25,500 Supplies (indirect material): 12,000 Total: $120,000 Other Building occupancy cost (heat, light, depreciation, etc) Factory Facilites: $6,400 Sales Offices: 1,600 Administrative Offices: 1,000 Total: $9,000 Production equipment costs: Power:$4,100 Repairs and maintenance: 1,500 Depreciation: 1,500 Other: 1,000 Total: $8,100 The firms job order costing system uses direct labor hours as the cost driver for overhead application. In december of the preceeding year. Shar has prepared the following budget for direct labor and manufacturing overhead costs for the current year. the plant is capable of operating at 150,000 direct labor hours per year. However, Shar estimates that the normal usage is 120,000 hours in a typical year. Manufacturing Overhead Direct Labor Hours Variable Fixed 100,000 $325,000 $216,000 120,000 390,000 216,000 140,000 455,000 216,000 During November the following jobs were completed: Job 77: side chairs Job 78: end tables
1. Calculate the predetermined overhead rate for the entire year.
2. Calculate the total cost of job 77.
3. Compute the amount of manufacturing overhead applied to job 79 during November.
4. What was the total amount of manufacturing overhead applied during November?
5. Compute the actual manufacturing overhead incurred during November.
6. Calculate the overapplied or underapplied overhead for November.

Click here for the solution: Tiana Shar, the controller for Bondi Furniture Company, is in the process of analyzing the overhead costs for the month of November