Week 2 Homework - Intermediate Accounting

E13-1 (Basic Sheet Classification of Various Liabilities)

(a) Accrued vacation pay. – Current Liability

(b) Estimated taxes payable. – Current Liability

(c) Service warranties on appliance sales. – Current Liability or long-term liability depending on the terms of the warranty

(d) Bank overdraft. – Current Liability

(e) Personal injury claim pending. –Footnote Disclosure

(f) Unpaid bonus to officers. – Current Liability

(g) Deposit received from customer to guarantee performance of a contract. – Current or noncurrent liability

(h) Sales taxes payable. – Current Liability

(i) Gift certificates sold to customers but not yet redeemed. – Current Liability

(j) Premium offers outstanding. – Current Liability

(k) Discount on notes payable. – Current Liability or long-term liability

(l) Employee payroll deductions unremitted. – Current Liability

(m) Current maturities of long-term debts to be paid from current assets. – Current Liability

(n) Cash dividends declared but unpaid. – Current Liability

(o) Dividends in arrears on preferred stock. – Footnote disclosure

(p) Loans from officers. – Current Liability or long-term liability

E13-2 (Accounts and Notes Payable)

(a) Sept. 1st Purchases 50,000

Accounts Payable 50,000

Oct. 1st Accounts Payable 50,000

Notes Payable 50,000

Oct. 1st Cash 75,000

Discount on Notes Payable 6,000

Notes Payable 81,000

(b) Dec. 31st Interest Expense 1,000

Interest Payable (50,000/8% x 3/12) 1,000

Dec. 31st Interest Expense 1,500

Discount on Notes Payable (6,000x3/12) 1,500

(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

E13-8 (Payroll Tax Entries)

Formula:

480,000-140,000 x 7.65%=26,010

140,000 x 1.45% =2,030; 26,010 +2,030 = 28,040

Wages and Salaries Expense 480,000

Withholding Taxes...