Payroll Register / Schedule of Cash Payments

P11-3B John's Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours a week. Payroll data for the week ended February 15, 2010, are presented below:

Employees: Hours Worked: Hourly Rate: Fed Inc Tax Withholdings: United Fund: The following tax rates are applicable:
FICA 8.00%
J. Uddin 39 $12.00 $34.00 $0.00 State Income Tax 3.00%
B. Conway 42 11.00 20.00 10.00 State Unemployment Taxes 5.40%
S. Becker 44 10.00 51.00 5.00 Federal Unemployment Taxes 0.80%
L. Blum 46 10.00 36.00 5.00
J. Uddin and B. Conway are married. They claim 2 and 4 withholding allowances, respectively.
The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).

Instructions:
(a) Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table found in the text for federal income tax withholdings.)

JOHN'S DRUG STORE
Payroll Register
For the Week Ended February 15, 2010
Earnings Deductions
Employees: Hours Worked: Hourly Rate: Regular Overtime Gross Pay FICA Fed. State "United
Fund" Total Net Pay "Store
Wages
Expense" "Office
Wages
Expense"

J. Uddin
B. Conway
S. Becker
L. Blum
Totals Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula

(b) Journalize the payroll on February 15, 2010, and the accrual of employer payroll taxes. (c) Journalize the payment of the payroll on February 16, 2010.

Feb 15 Account title Amount Feb 16 Account title Amount
Account title Amount Account title Amount
Account title Amount
Account title Amount (d) Journalize the deposit in a Federal Reserve bank on February 28, 2010, of the FICA and federal income taxes payable to the government.
Account title Amount
Account title Amount
Account title Amount
Feb 28 Account title Amount
Feb 15 Account title Amount Account title Amount
Account title Amount Account title Formula
Account title Amount
Account title Amount

P12-3B The partners in Apache Company decide to liquidate the firm when the balance sheet shows the following:
APACHE COMPANY
Balance Sheet
April 30, 2010
Assets Liabilities and Owners' Equity
Cash $30,000 Notes payable $20,000
Accounts receivable 25,000 Accounts payable 30,000
Allowance for doubtful accounts (2,000) Wages payable 2,500
Merchandise inventory 35,000 Scottie, Capital 28,000
Equipment 20,000 Spock, Capital 13,650
Accumulated depreciation - Equipment (8,000) Kirk, Capital 5,850
Total $100,000 Total $100,000

The partners share income and loss 5 3 2 During the process of liquidation, the transactions below were completed in the following sequence:
1. A total of $57,000 was received from converting noncash assets to cash.
2. Gain or loss on realization was allocated to partners.
3. Liabilities were paid in full.
4. Cash was paid to the partners with credit balances.

Instructions:
(a) Prepare a schedule of cash payments.

APACHE COMPANY
Schedule of Cash Payments
Item Cash + "Noncash
Assets" =

Balances before liquidation Amount + Amount =
Sale of noncash assets and allocation of loss (1) + (2) Amount + Amount =
New balances Formula + Formula =
Pay liabilities (3) Amount + Amount = Liabilities + Scottie, Capital + Spock, Capital + Kirk, Capital
New balances Formula + Formula =
Cash distribution to partners (4) Amount + Amount = Amount + Amount + Amount + Amount
Final balances Formula + Formula = Amount + Amount + Amount + Amount
Formula + Formula + Formula + Formula
(b) Prepare the entries to record the transactions. Amount + Amount + Amount + Amount
Formula + Formula + Formula + Formula
(b) (1) Apr 30 Account title Amount + Amount + Amount + Amount
Account title Formula + Formula + Formula + Formula
Account title
Account title (c) Post to the cash and capital accounts.
Account title
Account title Cash Spock, Capital
Account title

Title
Title
Title

(b) (2) Apr 30 Account title
Account title Scottie, Capital Kirk, Capital
Account title
Account title Loss on Realization

(b) (3) Apr 30 Account title
Account title
Account title
Account title Cash

(b) (4) Apr 30 Account title
Account title
Account title
Account title Cash