The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010

PR 11-5A The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010:

Fed U.S. Accumulated
Employee Hours Worked Hourly Rate Weekly Salary Income Tax Savings Bonds Earnings Dec 3
Beilein 32 $16.00 $102.40 10 $24,576
Calhoun 32 32.00 369.60 10 84,480
Calipari 40 28.00 240.80 20 53,760
Knight 42 32.00 316.48 66,048
Odom $3,400 748.00 90 163,200
Olson 1,600 384.00 76,800
Pitino 34 18.00 91.80 29,376
Ryan 44 34.00 297.16 20 75,072
Thompson 40 26.00 218.40 35 49,920

Employees Olson and Odom are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1.5 times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0% on the first 100,000 of each employee's annual earnings, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to used is No. 345.

1. Prepare a payroll register for Enrichment Industries, Inc for the week ended December 10, 2010. Use the following columns for the payroll register: Name, Total Hours, Reg Earnings, Overtime Earnings, Total Earnings, Social Security tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck. No, Sales Salaries Expense, and Office Salaries Expense.
2. Journalize the entry to record the payroll sales for the week.

Click here for the solution: The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010

The following account balances relate to the stockholders’ equity accounts of Patil Corp. at year-end

P12-2A The following account balances relate to the stockholders’ equity accounts of Patil Corp. at year-end.

2012 2011
Common stock, 10,500 and 10,000 shares, respectively, for 2012 and 2011 $160,800 $140,000
Preferred stock, 5,000 shares 125,000 125,000
Retained earnings 300,000 270,000

A small stock dividend was declared and issued in 2012. The market value of the shares was $8,800. Cash dividends were $20,000 in both 2012 and 2011. The common stock has no par or stated value.

Determine cash flow effects of changes in equity accounts.

Instructions
a. What was the amount of net income reported by Patil Corp. in 2012?
b. Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2012.
c. Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows.

Check: (a) Net income $58,800

Click here for the solution: The following account balances relate to the stockholders’ equity accounts of Patil Corp. at year-end