Question :
194.General Co. entered into the following transactions involving short-term notes : 1258979
194.General Co. entered into the following transactions involving short-term notes payable.On May 14, General purchased $40,000 merchandise from Steller Co., terms are 2/15, n/30. General uses the perpetual inventory system. On May 29, General replaced the May 14 account payable with a 60-day, $36,000 note bearing 8% annual along with paying $4,000 in cash. On July 28, General paid the amount due on the note at maturity.Prepare journal entries for all the preceding transactions and events.
195.Drake Company pays its employees for two weeks of vacation each year. The total annual cost of the vacation benefit is $109,920. Prepare the journal entry to record the monthly accrued vacation expense.
196.Hollow Company provides you with following information for two of its employees. The company is subject to the following taxes.
TaxRateApplied To
FICA—Social Security6.20%First $117,000
FICA—Medicare1.45%All gross pay
FUTA0.60%First $7,000
SUTA3.20%First $7,000
Compute amounts for each of these four taxes as applied to each employee’s gross earnings for November.
Gross Pay through OctoberGross Pay for November
a. $6,400$2,000
b. $112,000$9,400
197.Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May.
Office SalariesSales SalariesSocial SecurityTaxesMedicare TaxesFederal Income Taxes
$38,000$26,000$3,968$928$5,600
a. Recorded the May payroll using the payroll register information given above. b. Recorded the employer’s payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%. c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes. d. Issued a check to the state for the payment of the SUTA taxes for the month of May. e. Issued a check to Reliant Bank in payment of the employer’s quarterly FUTA taxes for the first quarter in the amount of $1,020.
198.Sparks Company entered into the following transactions involving short-term notes payable. On June 18, Sparks purchased $25,000 merchandise from Equip Co., terms 2/10, n/30. Sparks uses the perpetual inventory system. On July 19, Sparks replaced the June 18 account payable with a 60-day, $12,000 note bearing 4% annual interest in addition to paying $13,000 in cash. Sparks paid the amount due on the note at maturity. 1. Determine the maturity date for the note. 2. Prepare journal entries for all the preceding transactions and events.
199.Richardson Fields receives $31,680 cash in advance ticket sales for 11 home soccer games. Record the advance ticket sales on March 31. Record the revenue earned for the first game played on August 17.
