Accounting Equation Future Value Homework Help
- December 1, 2017
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- Category: Accounting
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1. Calculate the future value of $3,500, compounded annually for each of the following:
• 10 years at 7 percent.
• 15 years at 9 percent.
• 20 years at 5 percent.
2.Travis Company purchased merchandise on account from a supplier for $9,100 terms 2/10 net 30. Travis returned $1400 of the merchandise and received full credit. Travis company paid for the merchandise within the discount period.
Under a perpetual inventory system record the journal entries required 1) purchase 2) the return and 3) the payment.
3. Computing depreciation—three methods Crackling Fried Chicken bought equipment on January 2, 2016, for $21,000. The equipment was expected to remain in service for four years and to perform 3,600 fry jobs. At the end of the equipment’s useful life, Crackling’s estimates that its residual value will be $3,000. The equipment performed 360 jobs the first year, 1,080 the second year, 1,440 the third, and 720 the fourth year.
Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods.
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4. Computing and journalizing an employee’s total pay Jenna Lindsay works at College of Boston and is paid $40 per hour for a 40-hour workweek and time-and-a-half for hours above 40.
a. Compute Lindsay’s gross pay for working 54 hours during the first week of February.
b. Lindsay is single, and her income tax withholding is 10% of total pay. Lindsay’s only payroll deductions are payroll taxes. Compute Lindsay’s net (take-home) pay for the week. Assume Lindsay’s earnings to date are less than the OASDI limit.
c. Journalize the accrual of salaries and wages expense and the payments related to the employment of Jenna Lindsay.
5.Computing payroll amounts considering FICA tax ceilings Lori Waverly works for MRK all year and earns a monthly salary of $12,000. There is no overtime pay. Lori’s income tax withholding rate is 20% of gross pay. In addition to
payroll taxes, Lori elects to contribute 4% monthly to United Way. MRK also deducts $125 monthly for co-payment of the health insurance premium. As of September 30, Lori had $108,000 of cumulative earnings.
a. Compute Lori’s net pay for October.
b. Journalize the accrual of salaries expense and the payments related to the employment of Lori Waverly
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