ACCT 211 Connect Homework Chapter 9 Problems Liberty University Solution

Question 1

Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017.

1. Determine the maturity date for each of the three notes described.

Question 2

2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.)

Question 3

3. Determine the interest expense to be recorded in the adjusting entry at the end of 2016. (Do not round your intermediate calculations. Use 360 days a year.)

Question 4

4. Determine the interest expense to be recorded in 2017. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.)

Question 5

5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.)

5.2 Prepare journal entries for all the preceding transactions and events for 2017. (Do not round your intermediate calculations.)

Question 6

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $21,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,320 of medical insurance deductions, and $920 of union dues. No employee earned more than $7,000 in this first period.

1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis’s merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal places.)

1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.)

2. Prepare the journal entry to record Regis’s (employer) payroll taxes resulting from the January 8 payroll.

Question 7

Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company’s FUTA taxes are 0.6% and SUTA taxes are 2.15%.

Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):

Question 8

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer.

Question 9

2. How much warranty expense is reported for November 2016 and for December 2016?

Question 10

3. How much warranty expense is reported for January 2017?

Question 11

4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016?

Question 12

5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017?

Question 13

Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes).