1 answer

The following transactions apply to Park Co. for Yeart 1. Received $50,000 cash from the issue...

Question:

The following transactions apply to Park Co. for Yeart 1. Received $50,000 cash from the issue of common stock. 2 Purchased I
image.png
The following transactions apply to Park Co. for Yeart 1. Received $50,000 cash from the issue of common stock. 2 Purchased Inventory on account for $180,000. 3. Sold Inventory for $250,000 cash that had cost $140,000. Sales tax was collected at the rate of 5 percent on the Inventory sold 4. Borrowed $50,000 from First State Bank on March 1, Year 1. The note had a 7 percent interest rate and a one-year term to maturity. 5. Pald the accounts payable (see transaction 2). 6. Paid the sales tax due on $190,000 of sales. Sales tax on the other $60.000 is not due until after the end of the year. 7. Salaries for the year for one employee amounted to $46,000. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income tax withheld was $5,300. 8. Pald $5,800 for warranty repairs on account during the year. 9. Pald $36,000 of other operating expenses during the year. 10. Pald a dividend of $2,000 to the shareholders Adjustments: 11. The products sold in transaction 3 were warranted. Park estimated that the warranty cost would be 3 percent of sales. 12 Record the accrued Interest at December 31, Year 1 13. Record the accrued payroll tax at December 31, Year 1. Assume no payroll taxes have been paid for the year and that the unemployment tax rate is 6 percent (federal unemployment tax rate is 06 percent and the state unemployment tax rate is 5.4 percent on the first $7,000 of earnings per employee).
We were unable to transcribe this image

Answers

Asset = Liabilities + Stockholders equity
cash + Inventory = Accounts payable + Sales tax payable + Employ.Inc tax payable + FICA SS payable FICA-Medi tax payable + Fed unemply tax payable+ + State Unemploy.tax payable + warranty payable + Interest payable + Note payable + common stock + retained earning Account title for earning
1 50000 50000
2 180000 180000
3a 262500 12500 [250000*5%] 250000 Revenue
3b -140000 -140000 expense
4 50000 50000
5 -180000 -180000
6 -9500   [190000*.05] -9500
7 -33250 5300 2760   [46000*6%] 690 [46000*1.5%] -42000 salary expense
8 -5800 -5800 Repair expense
9 -36000 -36000 other expense
10 -2000 -2000 dividend
11 7500   [250000*3%] -7500 warranty expense
12 2917   [50000*.07*10/12 ] -2917 Interest expense
13 2760 (employer portion) 690 42   (7000*.6%) 378   (7000*5.4%) -3870 payroll tax expense
TOTAL 95950 + 40000 = 0 + 3000 + 5300 + 5520 1380 + 42 + 378 + 7500 + 2917 + 50000 + 50000 + 9913

**Interest on note being accrued for 10 months [1Mar- 31dec]

.

Similar Solved Questions

1 answer
I have completed these but wanting to compare such as Question 14. Is the word "Total"...
I have completed these but wanting to compare such as Question 14. Is the word "Total" added in the row or written as "Average" or "Total Average" Also Question 8 is not clear what fill color. Is it supposed to stay as blue and just select gradient fill? Very unclear question...
1 answer
2. Calculate experimental error using the following data: the measured value equals 1.4 cm; the accepted...
2. Calculate experimental error using the following data: the measured value equals 1.4 cm; the accepted value equals 1.2 cm. O-14.3% O 14.3% O-16.7% O 16.7%...
1 answer
Find the equation of the line sin(x+5y)+11x+1=e^y
find the equation of the line sin(x+5y)+11x+1=e^y...
1 answer
Air at 70℉ flows parallel to a smooth, thin, flat plate at 13 ns. The plate...
Air at 70℉ flows parallel to a smooth, thin, flat plate at 13 ns. The plate is 10 6 ft long Determine whether the boundary layer on the plate is most likely laminar, turbulent, or somewhere in between (transitional). Calculate the boundary layer thickness at the end of the plate where the boun...
1 answer
Q4 93 Let q1-43-1.0x 10-6 C, q2-q4-1.0x 10-6 C,and a-0.1 m. What is the magnitude of...
q4 93 Let q1-43-1.0x 10-6 C, q2-q4-1.0x 10-6 C,and a-0.1 m. What is the magnitude of the force in Newtons acting on a2?...
6 answers
Which is an effective strategy for ending an informative letter to a new client
Which is an effective strategy for ending an informative letter to a new client? (Points: 5) Stress that the reader is welcome to call you anytime if more information is needed. Refer to your company's future relationship with the reader's organization. Mention your company's reputation ...
1 answer
At the end of 2017, Payne Industries had a deferred tax asset account with a balance...
At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $32 million attributable to a temporary book- tax difference of $80 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $60 million. Payne has no other temporary differe...
1 answer
In your own words, why do you feel the radio show caused such strong reactions?
In your own words, why do you feel the radio show caused such strong reactions?...
1 answer
For the data described below, identify the level of measurement as nominal, ordinal, interval, or ratio....
For the data described below, identify the level of measurement as nominal, ordinal, interval, or ratio. The distances (in miles) of different movie theaters from a person's house Choose the correct answer below. O ordinal O nominal interval O ratio...
1 answer
A solid material has the band structure in the following figure, with the purple areas representing...
A solid material has the band structure in the following figure, with the purple areas representing regions occupied by electrons. The lower band is completely occupied by electrons, and the upper level is about one-third filled with electrons....
1 answer
A1.3 Relotive motion A private pilot wishes to fly from a city P to a city...
A1.3 Relotive motion A private pilot wishes to fly from a city P to a city Q that is 200 km directly north of city airplane wil be flying, there is an east wind (that is, the wind's directian is westj with a speed of SO kmh What angle( airplane to fly directly from city P to city Q? from te East...
1 answer
Part A is correct, but I cant figure out parts B or C You are able...
Part A is correct, but I cant figure out parts B or C You are able to hold your arm in an outstretched position because of the deltoid muscle. The force diagram for this is shown below. Assume that the weight of the humerus is 6 lb (with a center of gravity as shown), and that the deltoid muscle mak...
1 answer
A 16 cm c m -diameter circular loop of wire is placed in a 0.68 T...
A 16 cm c m -diameter circular loop of wire is placed in a 0.68 T T magnetic field. 1.When the plane of the loop is perpendicular to the field lines, what is the magnetic flux through the loop? 2.The plane of the loop is rotated until it makes a 34 ∘∘ angle with the field lines. What is ...
1 answer
(8 points) Question 4 : Given that 1. A= 12 Find A1017 and Justify your answer....
(8 points) Question 4 : Given that 1. A= 12 Find A1017 and Justify your answer. 2. B= 3 -100-1600 Find B" and Justify your answer. • Solution :...
1 answer
NURSING Provisions 7-9 what the provision might apply to theses' situation How can you foresee a...
NURSING Provisions 7-9 what the provision might apply to theses' situation How can you foresee a nurse acting in the interest of one of the following provisions. 7. The nurse’s contribution to the profession through research 8. Nurse’s obligation to advance health and human rights an...
1 answer
21. Consider a university with a population mean GPA of 2.95, a standard deviation of 2,...
21. Consider a university with a population mean GPA of 2.95, a standard deviation of 2, and a sampling distribution of all possible samples of size 100. The mean of the sample means is equal to 2.95 e) 025...
1 answer
2:40 PM Thu Jan 30 99% WileyPlus memo.docx Wiley PLUS Weygandt, Accounting Principles, 13e CALCULATOR Wiley...
2:40 PM Thu Jan 30 99% WileyPlus memo.docx Wiley PLUS Weygandt, Accounting Principles, 13e CALCULATOR Wiley PLUSHYWileyPLUS Help Contact Us Log Out PRINCIPLES OF ACCT I&II (ACC 114/121) STANDARD VIEV PRINTER VERSION BACK NEX Exercise 3-06 Mendoza Company accumulates the following adjustment data...
1 answer
Just in time (JIT) is an inventory management method whereby materials, goods, and labor are scheduled...
Just in time (JIT) is an inventory management method whereby materials, goods, and labor are scheduled to arrive or be replenished exactly when needed in the production process? Using this concept of JIT and Lean Thinking you should answer the following questions by taking any Saudi Manufacturing co...
1 answer
QUESTION 13 Which equation shows a strong acid in water? LiOH(s) ---> Li+ (aq) + OH"...
QUESTION 13 Which equation shows a strong acid in water? LiOH(s) ---> Li+ (aq) + OH" (aq) HF (aq) + H20(1) 6+ H30+(aq) + F"(aq) HF(aq) ++ H+ (aq) + F"(aq) HCl(aq) + H2O(aq) ---> C-(aq) + H30+(aq)....
1 answer
6. Define a relation on the plane by setting (xo, yo) < (x1, yı) if either...
6. Define a relation on the plane by setting (xo, yo) < (x1, yı) if either yo - xz <yı - xy, or yo - xz = yı - xị and xo < X1. Show that this is an order relation on the plane and describe it geometrically....