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Journal Entries and notes payable

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P2-2A The following are selected transactions of Detroit Company. financial
statements quarterly. (A perpetual inventory system is used.)

Jan. 2 Purchased merchandise on account from Teresa Speck Company, $15,000,
terms 2/10, n/30.
Feb. 1 Issued a 10%, 2-month, $15,000 note to Teresa Speck in payment of
account.
Mar. 31 Accrued interest for 2 months on Teresa Speck note.
Apr. 1 Paid face value and interest on Teresa Speck note.
July 1 Purchased equipment from Scottie Equipment paying $11,000 in cash and
signing a 10%, 3-month, $24,000 note.
Sept. 30 Accrued interest for 3 months on Scottie note.
Oct. 1 Paid face value and interest on Scottie note.
Dec. 1 Borrowed $10,000 from the Federation Bank by issuing a 3-month,
9%-interest-bearing note with a face value of $10,000.
Dec. 31 Recognized interest expense for 1 month on Federation Bank note.
Could you help me with parts C and D on this and also check parts A and B to be sure I have them right. Thanks!

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P2-2A The following are selected transactions of Detroit Company. financial
statements quarterly. (A perpetual inventory system is used.)

Jan. 2 Purchased merchandise on account from Teresa Speck Company, $15,000,
terms ...

Solution Summary

This discusses the Journal Entries and notes payable

$2.19
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Notes Payable, Wages Payable and Journal Entries for State Mill Company

Can you help me get started on this assignment?

Notes Payable and Wages Payable

P2. Part A: State Mill Company, whose fiscal year ends December 31, completed the following transaction involving notes payable:
2010
Nov. 25 purchased a new loading cart by issuing a 60-day 10 percent note for $86,400.
Dec 31 made the end-of-year adjusting entry to accrue interest expense.
Jan. 24 paid off the loading cart note.

Required
1- Prepare entries in journal form for State Mill Company's notes payable transactions.
2- When notes payable appears on the balance sheet, what other current liabilities would you look for to be associated with the notes?

What would it mean if this other current liability did not appear?
Part B: at the end of October, the pay roll register for State Mill Company contained the following totals: wages: $185,500; federal income taxes withheld, $47,442; state income taxes withheld, $7,818; social security withheld, $11,501; Medicare tax withheld, $ 2,690; medical insurance deductions, $6,400; and wages subject to unemployment taxes, $114,480.

Required
Prepare entries in journal form to record the (1) monthly payroll and (2) employer payroll expenses, assuming Social Security and Medicare taxes equal to the amount for employees, a federal unemployment insurance tax of 0.8 percent, a state unemployment tax of 5.4 percent, and medical insurance premiums for which the employer pays 80 percent of the cost.

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