a. During the year 20X1, Sampson Company had net credit sales of $980,000. Past experience shows...

 

Transcribed Image Text:

a. During the year 20X1, Sampson Company had net credit sales of $980,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts. b. Equipment purchased by Park Consultancy for $27,680 on January 2, 20X1, has an estimated useful life of 8 years and an estimated salvage value of $2,400. What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 20X1? c. On December 31, 20X1, Giant Plumbing Supply owed wages of $6,000 to its factory employees, who are paid weekly. d. On December 31, 20X1, Giant Plumbing Supply owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $6,000 of accrued wages for its factory employees. e. On December 31, 20X1, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $6,000 of accrued wages for its factory employees. For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 20X1, worksheet. (Round your answers to 2 decimal places.) Journal entry worksheet 1 2 3 4 5 Record an adjusting entry for uncollectible accounts. Note: Enter debits before credits. Date General Journal Dec 31, 20X1 Clear entry Record entry Debit Credit View general journal a. During the year 20X1, Sampson Company had net credit sales of $980,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts. b. Equipment purchased by Park Consultancy for $27,680 on January 2, 20X1, has an estimated useful life of 8 years and an estimated salvage value of $2,400. What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 20X1? c. On December 31, 20X1, Giant Plumbing Supply owed wages of $6,000 to its factory employees, who are paid weekly. d. On December 31, 20X1, Giant Plumbing Supply owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $6,000 of accrued wages for its factory employees. e. On December 31, 20X1, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $6,000 of accrued wages for its factory employees. For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 20X1, worksheet. (Round your answers to 2 decimal places.) Journal entry worksheet 1 2 3 4 5 Record an adjusting entry for uncollectible accounts. Note: Enter debits before credits. Date General Journal Dec 31, 20X1 Clear entry Record entry Debit Credit View general journal

Answer rating: 100% (QA)

Note a Uncollectible amount 980000 x 05 4900 Note b Depreciation 27680 240... View the full answer