intermediate accounting(fifteenth edition) ch13

PROBLEM 13-3 (Continued)

Payroll Tax Expense ....................................................... 94.74 FICA Taxes Payable (7.65% X $1,040) ................... FUTA Taxes Payable (0.8% X $460) ...................... SUTA Taxes Payable (2.5% X $460) ......................

Monthly Payment of Payroll Liabilities Withholding Taxes Payable ($104.00 X 4) ...................... 416.00 FICA Taxes Payable ($79.56 X 8) .................................... 636.48 Union Dues Payable ($20.80 X 4) ................................... 83.20 FUTA Taxes Payable ($3.68 X 4) ..................................... 14.72 SUTA Taxes Payable ($11.50 X 4) .................................. 46.00 Cash ........................................................................

79.56 3.68 11.50

1,196.40

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 13-37

(a)

PROBLEM 13-4

Name B. D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Total

Earnings September Income Tax to Aug. 31 Earnings Withholding

$ 6,800 6,500 7,600 13,600 107,000 112,000 $253,500

$ 800 700 1,100 1,900 13,000 16,000 $33,500

a

FICA

SUTA

FUTA

$ 80 70 110 190 1,300 1,600 $3,350 $ 61.20 $2.00* $1.60** 53.55 5.00*** 4.00**** 84.15 – – 145.35 – –

a

506.75 – – 312.75b – – $1,163.75 $7.00 $5.60

*($7,000 – $6,800) X 1% = $2.00

**($7,000 – $6,800) X .8% = $1.60 ***($7,000 – $6,500) X 1% = $5.00 ****($7,000 – $6,500) X .8% = $4.00

($6,700 X 6.2%) + ($6,300 X 1.45%) = $506.75 b

($1,700 X 6.2%) + ($14,300 X 1.45%) = $312.75

(b) (c)

Salaries and Wages Expense ..................................33,500.00 Withholding Taxes Payable ............................ FICA Taxes Payable ........................................ Cash ................................................................. Payroll Tax Expense ................................................1,176.35 FICA Taxes Payable ........................................ FUTA Taxes Payable ....................................... SUTA Taxes Payable ....................................... Withholding Taxes Payable .....................................3,350.00 FICA Taxes Payable .................................................2,327.50 FUTA Taxes Payable ................................................5.60 SUTA Taxes Payable ................................................7.00 Cash .................................................................

3,350.00 1,163.75 28,986.25

1,163.75

5.60 7.00

5,690.10

13-38

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)

PROBLEM 13-5

(a) (b) (c)

Cash (400 X $2,500) ................................................1,000,000 Sales Revenue ............................................... 1,000,000 Cash (400 X $2,500) ................................................1,000,000 Sales Revenue ............................................... 1,000,000 Warranty Expense (400 X [$155 + $185]) ...............136,000 Warranty Liability ........................................... 136,000

No liability would be disclosed under the cash-basis method relative to future costs due to warranties on past sales.

(d) Current Liabilities: Warranty Liability ............................................ $68,000 Long-term Liabilities: Warranty Liability ............................................ $68,000 (e) Warranty Expense ....................................................61,300 Inventory .......................................................... 21,400 Salaries and Wages Payable .......................... 39,900 (f) Warranty Liability .....................................................61,300 Inventory .......................................................... 21,400 Salaries and Wages Payable .......................... 39,900

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 13-39

(a) (b)

PROBLEM 13-6

Cash ...........................................................................294,300 Sales Revenue (300 X $900) ............................ Unearned Warranty Revenue (270 X $90) ......... Current Liabilities: Unearned Warranty Revenue ($24,300/3) ....... (Note: Warranty costs assumed to be incurred equally over the three- year period) Long-term Liabilities: Unearned Warranty Revenue

($24,300 X 2/3) ............................................... (c) Unearned Warranty Revenue ...................................8,100 Warranty Revenue ............................................ Warranty Expense .....................................................6,000 Inventory ........................................................... Salaries and Wages Payable ........................... (d) Current Liabilities: Unearned Warranty Revenue .......................... Long-term Liabilities: Unearned Warranty Revenue ..........................

270,000 24,300

$ 8,100

$16,200

8,100

2,000 4,000

$ 8,100

$ 8,100

13-40

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)