Submitted by: Submitted by timmyboi2k
Views: 229
Words: 604
Pages: 3
Category: Business and Industry
Date Submitted: 10/19/2012 11:55 PM
EXERCISE 13-1 (10–15 minutes)
(a) Current liability.
(b) Current liability.
(c) Current liability or long-term liability depending on term of warranty.
(d) Current liability.
(e) Footnote disclosure (assume not probable and/or not reasonably estimable).
(f) Current liability.
(g) Current or noncurrent liability depending upon the time involved.
(h) Current liability.
(i) Current liability.
(j) Current liability.
(k) Current liabilities or long-term liabilities as a deduction from face value of note.
(l) Current liability.
(m) Current liability.
(n) Current liability.
(o) Footnote disclosure.
(p) Separate presentation in either current or long-term liability section.
EXERCISE 13-2 (15–20 minutes)
(a) | Sept. 1 | Purchases | 50,000 | |
| | Accounts Payable | | 50,000 |
| | | | |
| Oct. 1 | Accounts Payable | 50,000 | |
| | Notes Payable | | 50,000 |
| | | | |
| Oct. 1 | Cash | 75,000 | |
| | Discount on Notes Payable | 6,000 | |
| | Notes Payable | | 81,000 |
| | | | |
(b) | Dec. 31 | Interest Expense | 1,000 | |
| | Interest Payable | | |
| | ($50,000 X 8% X 3/12) | | 1,000 |
| | | | |
| Dec. 31 | Interest Expense | 1,500 | |
| | Discount on Notes Payable | | |
| | ($6,000 X 3/12) | | 1,500 |
EXERCISE 13-2 (Continued)
(c) | 1. | Note payable | $ 50,000 |
| | Interest payable | 1,000 |
| | | $ 51,000 |
| | | |
| 2. | Note payable | $ 81,000 |
| | Less discount ($6,000 – $1,500) | 4,500 |
| | | $ 76,500 |
EXERCISE 13-8 (10–15 minutes)
Salaries and Wages Expense | 480,000 | |
Withholding Taxes Payable | | 80,000 |
FICA Taxes Payable* | | 28,040 |
Union Dues Payable | | 9,000 |
Cash | | 362,960 |
*[($480,000 – $140,000) X 7.65% = $26,010] | | |
$140,000 X 1.45% = $2,030; $26,010 + $2,030 =...