Accounting Chapter 11 Test

I need some help on this accounting test.

GLICKMAN – ACC111 End of Chapter 11 Test – (40 points)

Name: _______________________________________

Please show all calculations!!!

PROBLEM #1 – 18 points

On March 1, of the current year the Johnson Company negotiated a, 12%, 1-year, $100,000 note with Low Mountain Savings and Loan.

Show the effects on the accounting equation, by account title:

1. At the origination of the loan.

Assets = Liabilities + Equity

2. To record year-end interest.

Assets = Liabilities + Equity

3. At the maturity of the note.

Assets = Liabilities + Equity

PROBLEM #2 – 22 points

Presented below are the employee payroll records of the Bronsan Company for the week ending November 15, 20XX:

42

Employee’s Name	YTD Earnings	Curr Week Gross Pay		Fed Inc Tax	Medical Ins Ded.
R. Hawn	$ 25,700	$ 800	$ 155	$ 35
D. Hopkins	930	800	134	35
R. Allen	86,900	1,000	193		42
A. Ingram	18,400	740	128

Employee’s FICA taxes are withheld at a rate of 6.2% on the first $87,000 earned for Social Security and 1.45% of all wages for Medicare. Assume a state unemployment tax rate of 5.4% and a federal unemployment tax rate of 0.8% on the first $7,000 for each employee. Prepare the payroll register for the pay period and then prepare the necessary journal entries to record the payroll and payroll taxes.

(Hint: Remember to prepare both employee payroll taxes and employer payroll taxes.)

Payroll Register

Fed Inc Tax

Employee	Gross Pay	Soc Sec Tax	Medicare Tax	Insurance	Net Pay

General Journal

Date

Description

Debit

Credit