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Mastery Problems Liabilities: Current, Installment Notes, and contingencies Copperfield and Company Chart of Accounts Payroll Short-Term Note Payable installment Note Warranty You ve just started your first accounting job, as the counts payable and payroll clerk for Copperfield and Company, a provider of delicate wine glasses to meet your predecessore jobbet suddenly, and was not able to complete all the tasks before leaving. You need to get up to speed and complete the unfinished tasks as soon as possible Your tasks on your first day are the following: 1. Review the Payroll Journal entries made by your predecessor 2. Compute the relevant amounts for the company's short-term note payable and determine whether your predecessor's journal entries are comect 3. Confirm the journal entry for this year's payment on an installment note 4. Make a recommendation as to whether the company thoud journalize any warranty expense for the month You decide to get started the sooner the better! 470.450.00 Sauries Payable Check My Workmore Check My Work uses remaining Save and All werk saved Assignment Score: 0.0% MacBook Air OM 04 Problem Printem Mastery Problem: Liabilities: Current Installment Notes, and contingencies Copperfield and Company Chart of Accounts Payroll Short-Term Bota Payable installment Note Warunty The following Patol Journal entries for Oct. 15 were made by your predecessor For FICA.sume that the social security nuteis 6.0% and the Medicare rate is 15. The state and federal bax rates are 5.4%, and 0.8%, respectively. The company others 401k paru to employees. Review the jouma entries, the answer o outons that follow JOURNAL ACCOUNTING EQUATION DERIT CSIT ALETS LATES TOUITY 1 145.500.00 1 525.300.00 97.000.00 205700.00 + 1 + 1 DATE DESCRIPTION O. 15 Sites Sataries Expert Officers Salaries Expert Office Salaries Expense Pactory Wages Expense Social Security Tas Payable Medicare Tax Payable Employees Federal Income Tax Puyat Medical Insurance Payotte Retete Contributions Payable Sales Payable 5820000 1455000 1 T 1 174.000 104.700.00 145,500.00 0049100 1 + Check My Work 3 more Check My Work uses mairing All work saved Assignment Score: 0.0% MacBook Air bb V 94 Mastery Problem: Liabilities: Current, Installment. Notes, and contingencies Copperfield and Company Chart of Accounts Payroll Short-Term Note Payable Installment Note Warranty 106,700.00 Medical Insurance Payable Retirement Contributions Payable 145.500.00 470,450.00 10 74,20700 1 58.200.00 14.550.00 T 13 Salaries Payable 15 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable Federal Unemployment Test Payable State Unemployment Tax Payable 15 Pension Expense Cash 188.00 + 14 1.269.00 T 87,300.00 7.30000 4 11 In order to confirm the previous clerk's payrol calculations, you have been asked to supply the following amounts based on your wol the pole These were apart company records and investigated further if necessary 1. Determine the payroll amount subject to federal and state unemployment times in this payroll Check My Work 3 ore Check My Work uses remaining All work saved Assignment Score: 0.0% MacBook Air Chapter 10 Mastery Problem Print Item Mastery Problem: Liabilities: Current, Installment Notes, and contingencies Copperfield and Company Chart of Accounts Payroll Short-Term Note Payable Installment Note Warranty In order to confirm the previous clerk's payroll calculations, you have been asked to supply the following amounts based on your review of the payroll antries. These amount will be checked against the company records and investigated further if necessary Determine the payroll amount subject to federal and state unemployment taxes in this payroit 2. What is the total payroll for Copperfield and Company shown in these journal entries? 3. What is Copperfield and Company's share of FICA taxes in this payrol? A 4. How much has Copperfield and Company contributed to employee 401k plans in this payroll? Check My Work 3 more Check My Work uses remaining Save and be All work saved. Assignment Score: 0.0% MacBook Air Printem Chapter 10 Mastery Problem Short-Tarm Note Payable Copperfield and Company sued a 90 day, 5.00% noe for $190,000 to a creditor on account. The previous centered the flowing ournal tries to record the name on 10, and payment of the ACCOUNTING EQUATION JOURNAL CT DESCRON POSTO DEM 10.000.00 LABLES + 10.000.00 T 2 DATE 10 counts Payable ats Payable Notes Payne Accounts Payable Interest Expense 19950000 + 190.0000 250000 1 You notice that the outentry for recording the role on July 10 is conect, but the entry for the payment of the role at maturity including more the dead was not correct Jumate the payment of the note at my should have been oud. Don't forget to include de Aur a 300-day yow ACCOUNTING EQUATION JOURNAL TOUT CREME POLEME DESCRIPTION BARY Check My Workmore Check My Works remaining Save and be Mwok ved Assignment Score: 0.0% MacBook Air DD be 4. 80 56 22 F4 FS 13 esc CSP Chapter 10 Mastery Problem Pem D JOURNAL ACCOUNTING EQUATION DATE M10 Accounts Payable DISCO MOLE RE CREDIT BERT 190000.00 LES + TOUTY T 199,500.00 1 Notes Payable Accounts Interest Expense T 190,000.00 95000 1 You notice that the oumalanty for recording the role on 10 is connect, but the entry for the payment of the martyrdding interested and was Journal are of the rate at matunty as showed have been jumalized. Don't forget to the date Asanw380-day JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST NIE DET ASETS DUTY 1 1 Check My Work more Check My Work uses remaining Save and til All work saved Assignment Score: 0.0% MacBook Air 8 09 18 Chapter 10 Mastery Problem Copperfield and Company Payroll Chart of Account Short-Term Note Payable Installment Note Copperfield and Company Instament Note YO The following ultry was made by your predecessor to record the annual payment on a 5%, 10-year installment note PAGE 2) ACCOUNTING EQUATION JOURNAL LI ROUTY 1 DE CON ROSE 736 SAT Oct 1 Teste Payabile 22704000 475.522.00 215 702.562.00 1 110 w Using the woman provided compute the following amounts What was the carrying amount ook value of the instalment note before the payment on October 19 2. What portion of reset your payment will be interest? (Mound the amount to the newest dolar) Check My Work more Check My Workoming Assignment Score: 0.0% MacBook Air Chart of Accounts Payroll Short-Term Note Payable Installment Note Copperfield and Company Installment Note Warranty Copperfield and Company has decided to provide a warranty on its products. The previous clerk lett a note with the files on this new warranty on glass breakage, deciding that an entry for warranty expense was not necessary, with the following reasoning "Our product is the finest in the world, and thus the contingency of a warranty replacement for breakage is remote. Under accounting standards, the proper treatment for a remote likelihood of occurrence is to take no action Accordingly, in my professional judgment, no journal entry should be made for warranty expense. You should review the previous clerk's notes and evaluate the decision. After refreshing your memory on the treatment of contingent abilities, what action will you take? Make no entry, the previous clerk is correct that there is a remote chance of any breakage Since there's no way to accurately determine the amount of breakage that might occur, no entry or disclosure is required Make no entry, but disclose the possible warranty liability amount in the notes to the company financial statements Journalize an adjusting entry debiting Product Warranty Expense and crediting Product Warranty Payabile. Assume that a reasonable estimate of the warranty cost can be determined by an examination of prior breakage and replacement data 2. What portion of next year's payment will be interest? (Round the amount to the nearest dollar) Check My Work 3 more Check My Work uses remaining. gnment Score: 0.0% MacBook Air

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