Liability

Liability

1. Payroll accounting:
a. The entry to record Brookhaven’s February payroll:
Brookhaven Publishing
Journal Entry
For the month February
Date Particulars Debit ($) Credit ($)
2/28 Salaries Expense Dr.Social Security Taxes Payable Cr.Medicare TaxesPayable Cr.Federal Income Taxes WithholdingsPayableCr.State Income Taxes PayableCr.Insurance Withholdings PayableCr.Salaries payable 50,000 2,0007507,5002,00050037,250

b. The journal entry to record Brookhaven’s payroll tax expense:
Brookhaven Publishing
Journal Entry
For the month February
Date Particulars Debit ($) Credit ($)
2/28 Payroll Tax Expense Dr.Social Security Taxes Payable Cr.Medicare Taxes Payable Cr.State Unemployment Taxes Payable Cr.Federal Unemployment TaxesPayable Cr. 5,850 2,0007502,700400

Federal Unemployment Taxes= 50000* .8%=400
2. Current liabilities:
a. Journal entries to record the transactions:
Visconti’s
Journal Entries
For the year20XX,December 31
Date Particulars Debit ($) Credit ($)
12/1 Bank A/C Dr.Notes Payable- First City Bank Cr. 10,000 10,000
12/10 Warranty Expense Dr. Warranty Liability Cr. 810 810
12/22 Merchandise Inventory Dr.Accounts Payables- Oregon CompanyCr. 16,000 16,000
12/26 Bank A/C Dr.Notes Payable- First City Bank Cr. 5,000 5,000
12/31 Warranty Liability Dr.Cash Cr. 162 162
12/31 Salaries Expense Dr.Accrued Salaries Expense Cr. 1,400 1,400

b. Prepare adjusting entries on October 31 to record accrued interest:
Visconti’s
Adjusting Entries
For the year 20XX, December 31
Date Particulars Debit ($) Credit ($)
12/31 Interest Expense Dr. (125+62.5)Accrued Interest Expense Cr. 187.5 187.5

c. The Current Liability section of Red Bank’s balance sheet as of October 31:
Visconti’s
Balance Sheet
As of December 31, 20XX
Current Liabilities Amounts ($) Amounts ($)
Accounts PayableAdd: NewNotes PayableAdd: NewAccrued Interest ExpenseWarranty LiabilityAccrued Salaries Expense 203,60016,00010,0005,000 219,60015,000187.56481,400
Total Current Liabilities 236835.5

3. Notes payable:
a. Journal entries to record the transactions:
Red Bank Enterprises
Journal Entries
For the year ending October 31
Date Particulars Debit ($) Credit ($)
8/2 Bank A/C Dr.Notes Payable- Kingsville Cr. 55,000 55,000
8/20 Delivery Truck Dr. Notes Payables- Harris Motors Cr. 50,000 50,000
9/10 Merchandise Inventory Dr.Notes Payables- Pans Enterprises Cr. 15,000 15,000
9/11 Accounts Payables Dr.Notes Payables- Datatec Equipment Cr. 60,000 60,000
10/10 Notes Payables- Pans Enterprises Dr.Interest Expense Dr.Bank A/C Cr. 15,000150 15,150
10/11 Notes Payables- Datatec Equipment Dr.Interest Expense Dr.Bank A/C Cr. 60,000700 60700
10/30 Notes Payable- Kingsville Dr. Interest Expense Dr.Bank A/C Cr. 55,0001650 56650

Pay For Homework

b. Prepare adjusting entries on December 31 to record accrued interest:
Red Bank Enterprises
Adjusting Entries
For the year ending December 31
Date Particulars Debit ($) Credit ($)
10/31 Interest Expense Dr. Accrued Interest Expense Cr. 2217 2217

2 august to 31st December= 133 days
c. The Current Liability section of Red Bank’s balance sheet as of December 31:
Red Bank Enterprises
Balance Sheet
As of December 31
Current Liabilities Amounts ($)
Accounts PayableNotes PayableAccrued Interest Expense 203,60050,0002217
Total Current Liabilities 255817