Accounting 291 Week 4 Answers

XACC/291 – Week 4 Assignment

Complete Exercises E10-6, E10-8, & E10-18.
And Problems 10-3A & 10-6A.

E10-6

Payroll Tax Expense $352.16
FICA Taxes Payable 198.40
Federal Unemployment Taxes Payable 19.84
State Unemployment Taxes Payable 133.92
(To Record Payable Taxes for the week)
E10-8

1. True
2. True
3. False
4. True
5. False
6. False
7. True
8. True
9. True
10. True
E10-18

A.
Jan.1 Cash 562,613 Discount on Bonds Payable 37,387 Bonds Payable 600,000 (To record sale of bonds at discount

B.
Jul.1 Bond Interest Expense 28,131 Discount on Bonds Payable 1,131 Cash 27,000 (To record payment of bond interest and amortization of bond discount)

C.
Dec.31 Bond Interest Expense 28,187 Discount on Bonds Payable 1,187 Bonds Interest Payable 27,000 (To record account bond interest and amortization on bond discount)

(b), (c) (B) Interest Expense
(A) To Be Recorded (C)
Semiannual Interest to (5% X Preceding Discount Interest Be Paid Bond Carrying Value) Amortization Periods (4.5%x$600,000 (E X .05) (B) – (A)

Issue Date
1