Chapter 10 (1 section of exam 5) Flashcards
does not segregate sales and sales taxes at the time of sale
back out tax. debit cash, debit accounts recievable and then credit tax payable.
when selling tickets for future games, how do you journalize it?
For season tickets it is debited to cash and credited to unearned ticket revenue. When the first game hits, then you divide out the portion of ticket sales for one game and debit unearned ticket revenue and credit ticket revenue
Kelly Jones and Tami Crawford borrowed $18,000 on a 7-month, 10% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018.
JC would record the 18000 debit to cash and 18000 credit to notes payable
how do i journalize withholdings from employee’s paychecks?
credit them
how do i journalize bonds?
Cash debit. Bonds payable credit.
Secured bonds are bonds that
have specific assets of the issuer pledged as collateral.
The journal entry to record the monthly payroll on April 30 would include a
?
As interest is recorded on an interest-bearing note, the Interest Expense account is
increased; the Interest Payable account is increased
A current liability is a debt that can reasonably be expected to be paid
within one year, or the operating cycle, whichever is longer
The entry to record the payment of net payroll would NOT include…
Federal or state unemployment tax
A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to $210000, what is the amount of the sales taxes owed to the taxing agency?
since it is the sales price AND the amount of sales tax on sales that was credited, you have to back out the taxes. Sales tax WAS 10000.
On October 1, Bramble’s Painting Service borrows $105000 from National Bank on a 3-month, $105000, 4% note. What entry must Bramble’s Painting Service make on December 31 before financial statements are prepared?
Interest Expense 1050
Interest Payable 1050
remember that you divide the interest by 12 and multiply it by 3 months because the interest is in regard to an entire year
Bonds with a face value of $600000 and a quoted price of 102.25 have a selling price of
treat the 102.25 as a %. So multiply 600000 by 1.0225= 613500
payroll tax expense
FICA and Unemployment tax are credited while payroll tax expense is debited. These are what the company pays for and not out of the employees paychecks.
The journal entry to record the monthly payroll
debit salaries and wages EXPENSE
