AC/113 AC113 AC 113 UNIT 9 ASSIGNMENT

AC 113 UNIT 9 ASSIGNMENT

Unit 9 Assignment:

This week's Assignment will introduce you to notes payable, interest, warranty liabilities, and payroll tax liabilities.

Your Assignment consists of the following:

Exercises 8-2, 8-5 and 8-11

Templates are required to use for the Assignments. Download the template from the spreadsheet icon below. To assist you in making sure that you are on the right track with your Assignment, view the solutions to self-check your work. If you have questions, please contact your instructor.

Upload your Excel file to the Assignment Dropbox by the end of the unit.

Note: In order to ensure full functionality for these homework templates, it is recommended that you download/save each Excel template to your computer in the .xlsx format.

E8-2 Notes payable

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A business issued a 30-day, 7% note for $36,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest.

E8-5 Accrued product warranty

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Fungus Audio Works Inc. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $680,000 for January. In February, a customer received warranty repairs requiring $4,200 of parts.

• Determine the warranty liability at January 31, the end of the first month of the current year.
• What accounts are decreased for the warranty work provided in February?

E8-11 Recording payroll taxes

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According to a summary of the payroll of Apline Publishing Co., $460,000 was subject to the 7.5% FICA tax. Also, $39,000 was subject to state and federal unemployment taxes.

• Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.3%; federal unemployment, 0.8%.
• Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes.