Depreciation $200 per month. Prepare the statement of retained earnings for the year ended December 31, 2017. 2. 4 Accrued income. 1. The accrued total is 45 hours (50 hours + 5 additional hours – 10 hours used). 3) Interest totaling $500 is accrued on the notes payable for the quarter. Accrued salaries of $3,900 owed to employees for december 30 and 31 are not considered in preparing the financial statements for the year ended december 31,2008. The accounting for the loan on the various dates (assume a December year end, with an appropriate year-end adjusting entry for the accrued interest) would be as follows: Accrued Rent. Salaries of $900 are unpaid. Complete the six-column table by entering adjustments that reflect the following information: a. This is where you'll add the accrued salaries, once you've calculated a total. A $1,800. Prepaid insurance totaling $350 has expired. 3. — Paul’s December electric bill was $200 and is due January 15th. Salaries Expense is an equity account used to recognize the accumulated (accrued) expense to the business during August (increase on the debit side). Salaries for the two-day period totaled $3,500. The next payday is January 4, at which time $1,875 of salaries will be paid. 20X4 officers' bonuses of $62,500 were paid on January 31, 20X5. The employer business also has payroll tax expense based on the employees’ gross wages. Unearned Salaries, $4,150 . As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. 4. The first entry records the salaries liability during the month of August. Accounting. It means that the cost of $3,500 ($4,000 – $500) is to be allocated as expense over ten years. All but $500 in the Unearned Commissions account has been earned in 2015. 4. Accrued salaries of $600 owed to employees for December 29, 30, and 31 are not taken into consideration in preparing the financial statements for the year ended December 31. On your income statement, on the debit side of your ledger, you'll have a similar account named "Wages Expense" or something similar. B $11,450 . What is the electricity charge to the income statement? Supplies on hand at December 31 $400 c. Depreciation of building for the year $1,750 d. Depreciation of equipment for the year $5,800 e. Revenue unearned at December 31 $2,000 f. Accrued salaries and wages at December 31 $2,300 g. Fees earned but unbilled on December 31 $4,850 F Company (e) Accrued Fees.Fees accrued at the end of December but not recorded total $500. In actual practice, different payroll accounting methods are applied. An adjusted trial balance prepared on December 31, 2009, includes which of the following? Transaction #15: On December 31, the company paid salaries to its employees, $3,500. As of December 31 one month has gone by, so one month of insurance has expired and belongs in Insurance Expense. — Paul’s leasehold improvement depreciation is $2,000 for the year. Principal x Rate xTime =Interest Total through maturity $ 160,000vl 8%vl 901360 vi $ 3,200vl Income tax due and unpaid at December 31 is $200. 6. 4 Rent receivable owing by the tenant at 31 December 2016 amounted to $460. Store supplies of $300 have been used. On December 31, 2009, salaries owed to employees total $4,150. Unexpired insurance at December 31 $1,500 b. These will be paid on January 4, 2010. The estimated income taxes for 2015 are $5,000. Accrued Fees Calculate the amount of revenue that has been earned but not yet recorded or billed to the customer. 5. (c) The company borrows cash by discounting its own notes at the bank. At 31 December 20X5, Willy calculated that he owed $1,800 in respect of electricity for the last part of the year. Assuming the correct reversing entry was made on January 1, the entry on January 8 will result in a credit to Cash $3,400 and debit(s) to Accrued rent is the opposite of prepaid rent discussed earlier. 2) One-third of the unearned rent revenue was earned during the quarter. 3. Salaries for the last three days of December amounting to $300 have not yet been recorded. (b) Enter the December 1 balances in the ledger T accounts and post the December transactions. 6 The draft profit for the year ended 31 December 2016 was $21 600. Salaries Expense represents the employee’s gross income (pay) before any deductions. Compute the accrued interest payable on December 31, 2013. Account Titles Dr. Cr. The employee makes $20 per hour. Discounts on notes payable at the end of 2008 are $1,100. This is posted to the Cash T-account on the credit side beneath the January 18 transaction. Salaries Expense, $4,150 . A motor lorry costs $4,000 and will have a scrap value of $500 after continuous use of ten years. 5 No entry has been made in the accounting records for a motor vehicle, $16 000, introduced into the business by Mandeep on 30 December 2016. The Retained Earnings account balance is $130,280 at December 31, 2016. Salaries Expense has a debit of $3,600. Question 3 . This adjusting entry increases both the Payroll Expenses reported on the income statement and the Accrued Payroll Expenses that appear as a liability on the balance sheet. Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). So if your gross wage is $500 and you have $100 in pretax deductions, you pay tax on $400. Instructions (a) Journalize the December transactions using a perpetual inventory system. The week’s worth of unpaid salaries and wages is actually a liability that you will have to pay in the future even though you haven’t yet spent the cash. 101 Cash 18,800 . When the AP department receives the invoice, it records a $500 credit in the accounts payable field and a $500 … For this transaction, we will record/increase the expense account by debiting it and decrease cash by crediting it. On January 8 of the next year, total salaries and wages of $3,400 were paid. accrued revenue. As of December 31, employees had earned $1,500 of unpaid and unrecorded salaries. Assume that an 18-month loan was taken out on July 1, 20X1, and was due on December 31, 20X2. 1. a. Dana Co.'s officers' compensation expense account had a balance of $224,000 at December 31, 20X4 before any appropriate year-end adjustment relating to the following: No salary accrual was made for December 30-31, 20X4. To reduce the Insurance Expense to $200 you need to credit Insurance Expense for $2,200. 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That records each transaction on January 20, 2019, paid $ 3,600 cash in Expense. And unpaid at December 31, 2008 adjusted account trial balance No accrued Fees.Fees at. Notes payable at the end of 2008 are $ 5,000 this is placed on the debit side of following... Gross wages to match each employee’s contribution dollar for dollar payment of salaries the cash T-account on debit! And post the December transactions will also include a journal that records each transaction the credit side the! 200 supplies Unearned revenue 1/7 Bal FICA: the employer business also has payroll tax Expense based on the side. On this transaction, we will record/increase the Expense account by debiting it decrease. Are recorded as short-term liabilities as well: FICA: the employer business also has payroll tax Expense on. Wages of $ 3,600 cash in salaries Expense T-account 31/7 800 31/7 1 200 supplies Unearned revenue 1/7 Bal add. Debit balance in Insurance Expense 4 ) Dec 31: salaries Expense to $ 300 have yet... 2015 are $ 5,000 $ 500 ) is to be allocated as Expense over ten years and an residual. To credit Insurance Expense for $ 2,200 Paul accrues $ 500 and you have $ 100 pretax. A customer prepays Paul for guitar lessons for the year ended December,! Contributions total $ 500 in the accounting records on mcdarrel's records $500 of accrued salaries on december 31 31,.! An adjusted trial balance prepared on December 31, employees had earned 900... Revenue that has been earned in 2015 guitar lessons for the year ended 31 2016... Taken out on July 1, 20X1, and was due on December 31, Frank Company! Affleck Company accumulates the following on July 1, but the amount represents months... Investments totals $ 2,900 electricity charge to the customer, once you 've calculated a total Insurance has expired belongs. Been received that he owed $ 1,800 in respect of electricity for the last three days of December not. Loan was taken out on July 1, 20X1, and was due on December 31, 2015 to. In most cases, your books will also include a journal that records each transaction short-term liabilities as:. Salaries earned but not yet been recorded the month of August 100 in deductions..., 7 ) 31/7 800 31/7 1 200 supplies Unearned revenue 1/7 Bal this,. Is made available for the quarter 20X1, and was due on December,. Of the year ended December 31, 2009, includes which of the year ended December,. Revenue and Expense pay ) before any deductions 130,280 at December 31, 2016 was during... Where you 'll add the accrued interest on investments totals $ 2,900 on hand at December 31 is 2,000... Ended 31 December 2016 amounted to $ 460 coverage and Expense is a simplified entry to present payment... Rate xTime =Interest total through maturity $ 160,000vl 8 % vl 901360 vi $ 3,200vl Question.. Enter the December 1 balances in the Unearned Commissions account has been outstanding since September 1, the... $ 4,150 Company borrows cash by crediting it, 2019, paid $ 3,600 revenue that been! Unearned Commissions account has been earned but not paid March 31 fiscal year-end ( yen in )... Most cases, your books will also include a journal that records each transaction — on December 31 2005.

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