Instructions for the Microsoft Excel Templates by Rex A Schildhouse

Be advised, the template workbooks and worksheets are not protected. Overtyping any data may remove it.
Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text. You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed on the top of each page if the template requires more than one page. Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in assembly of multiple pages. If more than one page is required by the template, manual page breaks have been set to provide consistent presentation. All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the appropriate cells. In general, the yellow highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account title(s), values, memorandum appropriate to the entry, or text answers to questions. And information or data which may be required by the solution will be entered in cells with borders to help identify them. Where a yellow highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01, 2012, in the format set in the template. Where a yellow highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously entered. Where a yellow highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is provided and you can use the "look to" formula to reference the appropriate account title without typing it. Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be acceptable. Where a yellow highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of the formatting found in the templates to meet your desires. Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel.

Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel. Where a yellow highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles can simply be typed over. Where a yellow highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record the following events in General Journal number six." The print area is defined to fit onto 8 1/2" 11" sheets in portrait or landscape mode as required. Margins are generally set to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you may have to reformat the margins through Page Setup. The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes." When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or -$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will return a negative value if both cells E10 and E11 contain positive values. Microsoft Office and Microsoft Excel are products of, and copyrighted by, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation. Purchased inventory from Orion Company on account for $50,000 Sep 1 Darby records purchases gross and uses a periodic inventory system Oct 1 Issued a $50,000 12-month, 8% note to Orion in payment of account. Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interestOct 1 bearing $81,000 note. Instructions: (a) Prepare journal entries for the selected transactions above. Sep 1 Purchases Accounts Payable Accounts Payable Notes Payable Cash Discount on Notes Payable Notes Payable 50,000 50,000 50,000 50,000 75,000 6,000 81,000

Oct 1

Oct 1

(b) Prepare adjusting entries at December 31. Dec 31 Interest Expense [$50,000 8.00% (3/12)] Interest Payable Interest Expense Discount on Notes Payable [6,000 (3/12)] 1,000 1,000 1,500 1,500

Dec 31

(c) (1) Compute the total net liability to be reported on the December 31 balance sheet for the interestbearing note. Note payable Interest payable $50,000 1,000 $51,000

(c) (2) Compute the total net liability to be reported on the December 31 balance sheet for the zerointerestNote payable Less discount ($6,000 - $1,500) $81,000 4,500 $76,500

153010920.xlsx.ms_office, Exercise 13-2 Solution, Page 3 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation. Purchased inventory from Orion Company on account for $50,000 Sep 1 Darby records purchases gross and uses a periodic inventory system Oct 1 Issued a $50,000 12-month, 8% note to Orion in payment of account. Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interestOct 1 bearing $81,000 note. Instructions: (a) Prepare journal entries for the selected transactions above. Sep 1 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Formula Amount

Oct 1

Oct 1

(b) Prepare adjusting entries at December 31. Dec 31 Account Title Account Title Account Title Account Title Formula Formula Formula Formula

Dec 31

(c) (1) Compute the total net liability to be reported on the December 31 balance sheet for the interestbearing note. Account Title Account Title Amount Amount Formula

(c) (2) Compute the total net liability to be reported on the December 31 balance sheet for the zerointerestAccount Title Account Title Amount Amount Formula

153010920.xlsx.ms_office, Exercise 13-2, Page 4 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E13-5 (Compensated Absences) Matthewson Company began operations on January 2, 2012. It employs 9 individuals who work 8 10 paid vacation days and 6 paid sick days -hour days and are paid hourly. Each employee earns annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each Employee 2012 2013 2012 2013 2012 2013 $12 $13 0 9 4 5 Matthewson Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Instructions: (a)(1) Prepare journal entries to record transactions related to compensated absences during 2012. 2012 To accrue expense and liability for vacations Salaries and Wages Expense Salaries and Wages Payable To accrue expense and liability for sick pay Salaries and Wages Expense Salaries and Wages Payable To record sick leave paid Salaries and Wages Payable Cash

8,640 8,640 (1)

2012

5,184 5,184 (2)

2012

3,456 3,456

(3)

(a)(2) Prepare journal entries to record transactions related to compensated absences during 2013. 2013 To accrue the expense and liability for vacations Salaries and Wages Expense Salaries and Wages Payable To accrue the expense and liability for sick pay Salaries and Wages Expense Salaries and Wages Payable

8,640 9,360 (4)

2013

5,616 5,616 (5)

153010920.xlsx.ms_office, Exercise 13-5 Solution, Page 5 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: To record vacation time 2013 Intermediate Accounting, 14th Edition by Kieso, Weygandt, and paid Warfield
Salaries and Wages Expense Salaries and Wages Payable Cash 2013 To record sick leave paid Salaries and Wages Expense Salaries and Wages Payable Cash 648 7,776 8,424 (6) (8)

144 4,536 4,680

(6) (8)

employees per hour hours per day days 9 $12.00 8 10 = $8,640 (1) 9 $12.00 8 6 = $5,184 (2) 9 $12.00 8 4 = $3,456 (3) 9 $13.00 8 10 = $9,360 (4) 9 $13.00 8 6 = $5,616 (5) 9 $12.00 8 9 = $7,776 (6) 9 $12.00 8 2 = $1,728 (8) 9 $13.00 8 3 = $2,808 $4,536 (7) 9 $13.00 8 9 = $8,424 (7) (9) 9 $13.00 8 5 = $4,680 $13,104 NOTE: Vacation days and sick days are paid at the employees current wage. Also, if employees earn vacation pay at different pay rates, a consistent pattern of recognition (e.g., first-in, first-out) could be employed which liabilities have been paid. (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2012, and 2013. (1) (2) (3) (4) (5) (6) 2012 Vacation Sick Pay Wages Wages Payable Payable $0 $0 8,640 5,184 0 (3,456) $8,640 $1,728 (1) (2) hours per day 8 8 8 8 8 2013 Vacation Sick Pay Wages Wages Payable Payable $8,640 $1,728 9,360 5,616 (7,776) (4,536) $10,224 $2,808 (3) (4) days 10 2 1 10 3

Jan. 1 balance Plus accrued Less paid Dec. 31 balance

(1) (2) (3)

employees 9 9 9 9 9

per hour $12.00 $12.00 $12.00 $13.00 $13.00

= = = = =

$8,640 $1,728 $864 $9,360 $2,808

$10,224

(4)

153010920.xlsx.ms_office, Exercise 13-5 Solution, Page 6 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E13-5 (Compensated Absences) Matthewson Company began operations on January 2, 2012. It employs 9 individuals who work 8 10 paid vacation days and 6 paid sick days -hour days and are paid hourly. Each employee earns annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each Employee 2012 2013 2012 2013 2012 2013 $12 $13 0 9 4 5 Matthewson Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Instructions: (a)(1) Prepare journal entries to record transactions related to compensated absences during 2012. 2012 To accrue expense and liability for vacations Salaries and Wages Expense Salaries and Wages Payable To accrue expense and liability for sick pay Salaries and Wages Expense Salaries and Wages Payable To record sick leave paid Salaries and Wages Payable Account title

Formula Formula (1)

2012

Formula Formula (2)

2012

Amount Amount

(3)

(a)(2) Prepare journal entries to record transactions related to compensated absences during 2013. 2013 To accrue the expense and liability for vacations Salaries and Wages Expense Salaries and Wages Payable To accrue the expense and liability for sick pay Salaries and Wages Expense Salaries and Wages Payable To record vacation time paid Salaries and Wages Expense Salaries and Wages Payable Account title

Formula Amount (4)

2013

Formula Formula (5)

2013

#VALUE! Amount Formula

(6) (8)

153010920.xlsx.ms_office, Exercise 13-5, Page 7 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
2013 To record sick leave paid Salaries and Wages Expense Salaries and Wages Payable Account title #VALUE! Formula Formula (6) (8)

employees per hour hours per day days Number Amount Number Number = Formula (1) Number Amount Number Number = Formula (2) Number Amount Number Number = Formula (3) Number Amount Number Number = Formula (4) Number Amount Number Number = Formula (5) Number Amount Number Number = Formula (6) Number Amount Number Number = Formula (8) Number Amount Number Number = Formula Formula (7) Number Amount Number Number = Formula (7) (9) Number Amount Number Number = Formula Formula NOTE: Vacation days and sick days are paid at the employees current wage. Also, if employees earn vacation pay at different pay rates, a consistent pattern of recognition (e.g., first-in, first-out) could be employed which liabilities have been paid. (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2012, and 2013. (1) (2) (3) (4) (5) (6) 2012 Vacation Sick Pay Wages Wages Payable Payable Amount Amount Amount Amount Amount Amount Formula Formula (1) (2) hours per day Number Number Number Number Number 2013 Vacation Sick Pay Wages Wages Payable Payable Formula Formula Amount Amount Amount Amount Formula Formula (3) (4) days Number Number Number Number Number

Jan. 1 balance Plus accrued Less paid Dec. 31 balance

(1) (2) (3)

employees Number Number Number Number Number

per hour Amount Amount Amount Amount Amount

= = = = =

Formula Formula Formula Formula Formula

Formula

(4)

153010920.xlsx.ms_office, Exercise 13-5, Page 8 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E13-6 (Compensated Absences) Matthewson Company began operations on January 2, 2012. It employs 9 individuals who work 8 -hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each Employee 2012 2013 2012 2013 2012 2013 $12.00 $13.00 0 9 4 5 Matthewson Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to Year in Which Vacation Projected Future Pay Rates Time Was Earned Used to Accrue Vacation Pay 2012 $12.90 2013 $13.70 Instructions: (a) (1) Prepare journal entries to record transactions related to compensated absences during 2012. 2012 To accrue the expense and liability for vacations Salaries and Wages Expense Salaries and Wages Payable To record sick leave paid Salaries and Wages Expense Salaries and Wages Payable To record vacation time paid No entry, since no vacation days were used.

9,288 9,288

(1)

2012

3,456 8,359

(2)

2012

153010920.xlsx.ms_office, Exercise 13-6 Solution, Page 9 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th (a) (2) Prepare journal entries to transactions related to compensated absences during 2013. Intermediate Accounting , record 14 Edition by Kieso, Weygandt, and Warfield
2013 To accrue expense and liability for vacations Salaries and Wages Expense Salaries and Wages Payable To record sick leave paid Salaries and Wages Expense Cash To record vacation time paid Salaries and Wages Expense Salaries and Wages Payable Cash 9,864 9,864 (3)

2013

4,680 4,680

(4)

2013

65 8,359 8,424 days 10 4 10 5 9 9

(5) (6)

employees per hour hours per day (1) 9 $12.90 8 (2) 9 $12.00 8 (3) 9 $13.70 8 (4) 9 $13.00 8 (5) 9 $12.90 8 (6) 9 $13.00 8 Note: Vacation days and sick days are paid at the employees current wages

= = = = = =

$9,288 $3,456 $9,864 $4,680 $8,359 $8,424

(1) (2) (3) (4) (5) $44,071

(6)

(b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2012, and 2013. Accrued liability at yearAccrued liability at yearend end 2012 2013 Jan. 1 balance $0 $9,288 Plus accrued 9,288 9,864 Less paid 0 (8,359) Dec. 31 balance $9,288 (1) $10,793 (2) employees 9 9 9 per hour $12.90 $12.90 $13.70 hours per day 8 8 8 days 10 1 10

(1) (2)

= = =

$9,288 $929 $9,864 $10,793

153010920.xlsx.ms_office, Exercise 13-6 Solution, Page 10 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield

153010920.xlsx.ms_office, Exercise 13-6 Solution, Page 11 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E13-6 (Compensated Absences) Matthewson Company began operations on January 2, 2012. It employs 9 individuals who work 8 -hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each Employee 2012 2013 2012 2013 2012 2013 $12.00 $13.00 0 9 4 5 Matthewson Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to Year in Which Vacation Projected Future Pay Rates Time Was Earned Used to Accrue Vacation Pay 2012 $12.90 2013 $13.70 Instructions: (a) (1) Prepare journal entries to record transactions related to compensated absences during 2012. 2012 To accrue the expense and liability for vacations Account title Account title To record sick leave paid Account title Account title To record vacation time paid Account title Account title

Amount Amount

(1)

2012

Amount Amount

(2)

2012

Amount Amount

(a) (2) Prepare journal entries to record transactions related to compensated absences during 2013. To accrue expense and liability for vacations 2013 Account title Amount Account title

(3) Amount

153010920.xlsx.ms_office, Exercise 13-6, Page 12 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield
2013 To record sick leave paid Account title Account title To record vacation time paid Account title Account title Account title Amount Amount (4)

2013

Amount Amount Amount days Number Number Number Number Number Number

(5) (6)

employees per hour hours per day (1) Number Amount Number (2) Number Amount Number (3) Number Amount Number (4) Number Amount Number (5) Number Amount Number (6) Number Amount Number Note: Vacation days and sick days are paid at the employees current wages

= = = = = =

Formula Formula Formula Formula Formula Formula

(1) (2) (3) (4) (5) Formula

(6)

(b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2012, and 2013. Accrued liability at yearAccrued liability at yearend end 2012 2013 Jan. 1 balance Amount Amount Plus accrued Amount Amount Less paid Amount Amount Dec. 31 balance Formula (1) Formula (2) employees Number Number Number per hour Amount Amount Amount hours per day Number Number Number days Number Number Number

(1) (2)

= = =

Formula Formula Formula Formula

153010920.xlsx.ms_office, Exercise 13-6, Page 13 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P13-2 (Liability Entries and Adjustments) Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the Jackson Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $798,000 which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $120,000 The trucks were purchased in a state that applies a 5% sales tax. 4. The store determined it will cost $100,000 to restore the area surrounding one of its store parking lots, when the store is closed in 2 years. Schultz estimates the fair value of the obligation at December 31 is $84,000 Instructions: Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting journal entries are recorded only once a year on December 31. 1 Dec 5 Cash Due to Customer Cash Sales ($798,000 / 1.05) Sales Taxes Payable ($760,000 5%) Truck ($120,000 1.05) Cash Parking Lot Asset Retirement Obligation 500 500 798,000 760,000 38,000 126,000 126,000 84,000 84,000

Dec 31

Dec 10

Dec 31

153010920.xlsx.ms_office, Problem 13-2 Solution, Page 14 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P13-2 (Liability Entries and Adjustments) Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the Jackson Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $798,000 which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $120,000 The trucks were purchased in a state that applies a 5% sales tax. 4. The store determined it will cost $100,000 to restore the area surrounding one of its store parking lots, when the store is closed in 2 years. Schultz estimates the fair value of the obligation at December 31 is $84,000 Instructions: Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting journal entries are recorded only once a year on December 31. 1 Dec 5 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Formula Amount Amount Amount Amount

Dec 31

Dec 10

Dec 31

153010920.xlsx.ms_office, Problem 13-2, Page 15 of 17, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P13-4 (Payroll Tax Entries) Below is a payroll sheet for Otis Import Company for the month of September 2012. The company is allowed a 1.00% unemployment compensation rate by the state; the federal unemployment tax rate is 0.80% and the maximum for both is $7,000 . Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $106,800 . In addition, 1.45% is charged both employer and employee for an employees wages in excess of $106,800 per employee. Earnings to Aug 31 $6,800.00 6,500.00 7,600.00 13,600.00 105,000.00 112,000.00 September Earnings $800.00 700.00 1,100.00 1,900.00 13,000.00 16,000.00 Income Tax Withholding State U.C. Federal U.C.

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

F.I.C.A.

Instructions: (a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

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

Earnings to Aug. 31 6,800 6,500 7,600 13,600 105,000 112,000 251,500

September Earnings 800 700 1,100 1,900 13,000 16,000 33,500

Income Tax Withholding 80 70 110 190 1,300 1,600 3,350

FICA 61.20 53.55 84.15 145.35 188.50 232.00 764.75

Ref c

a b

State U.C. Federal U.C. 2.00 1.60 5.00 4.00 $7.00 $5.60

$13,000 1% = $188.50 $16,000 1.45% = $232.00 ($7,000 $6,800) 1.00% = $2.00 ($7,000 $6,800) 0.80% = $1.60 Wages and Salaries Expense Withholding Taxes Payable FICA Taxes Payable Cash 33,500.00 3,350.00 764.75 29,385.25

(b) Make the entry to record the payroll tax expenses of Otis Import Company. Payroll Tax Expense FICA Taxes Payable Federal Unemployment Tax Payable State Unemployment Tax Payable

777.35 764.75 5.60 7.00

(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month. Dec 31 Withholding Taxes Payable FICA Taxes Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Cash 3,350.00 1,529.50 5.60 7.00 4,892.10

153010920.xlsx.ms_office, Problem 13-4 Solution, Page 16 of 17, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P13-4 (Payroll Tax Entries) Below is a payroll sheet for Otis Import Company for the month of September 2012. The company is allowed a 1.00% unemployment compensation rate by the state; the federal unemployment tax rate is 0.80% and the maximum for both is $7,000 . Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $106,800 . In addition, 1.45% is charged both employer and employee for an employees wages in excess of $106,800 per employee. Earnings to Aug 31 $6,800.00 6,500.00 7,600.00 13,600.00 105,000.00 112,000.00 September Earnings $800.00 700.00 1,100.00 1,900.00 13,000.00 16,000.00 Income Tax Withholding State U.C. Federal U.C.

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

F.I.C.A.

Instructions: (a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

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

Earnings to Aug. 31 6,800 6,500 7,600 13,600 105,000 112,000 251,500

September Earnings 800 700 1,100 1,900 13,000 16,000 33,500

Income Tax Withholding Formula Formula Formula Formula Formula Formula Formula

FICA Formula Formula Formula Formula Formula Formula Formula

Ref c

a b

State U.C. Federal U.C. Formula Formula Formula Formula Formula Formula

Enter detail as desired. Enter detail as desired. Enter detail as desired. Enter detail as desired. Account Title Account Title Account Title Account Title Formula Amount Amount Amount

(b) Make the entry to record the payroll tax expenses of Otis Import Company. Account Title Account Title Account Title Account Title

Formula Amount Amount Amount

(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month. Dec 31 Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Formula

153010920.xlsx.ms_office, Problem 13-4, Page 17 of 17, 6/20/2013, 6:59 AM