Explore BrainMass
Share

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

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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.

© BrainMass Inc. brainmass.com October 17, 2018, 3:53 am ad1c9bdddf
https://brainmass.com/business/the-accounting-cycle/notes-payable-wages-payable-and-journal-entries-for-state-mill-company-442534

Solution Preview

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 Companyâ??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?
1 - ...

Solution Summary

This solution shows calculations and the journal entries for each requirement.

$2.19
Similar Posting

Whole Food Inc's Case Analysis

See the attached file.

Whole Foods Market, Inc.
Journal of Case Research in Business and Economics
James L. Harbin Texas A&M University-Texarkana
Patricia Humphrey Texas A&M University-Texarkana

1. As you research Whole Foods and their specific strategies what struck you as positives and/or negatives. Are there certain strategic elements that were particularly insightful about what Whole Foods does? Are there any glaring weaknesses that could jeopardize their success?

2. The formulation of strategy must take into consideration the dynamics of the industry and its competitors. Whole Foods has two main competitors, Fresh Market and Trader Joe's and others as well, as identified in the case. How has Whole Food's strategy been influenced by these competitors?

(http://www.sec.gov/Archives/edgar/data/865436/000086543612000033/wfm10k2012.htm).

View Full Posting Details