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Home / Questions / At December 31, 2014, Lansing Company general ledger shows the following balances af

At December 31, 2014, Lansing Company general ledger shows the following balances af

At December 31, 2014, Lansing Company's general ledger shows the following balances after posting adjusting entries:

 

Accounts Payable

$150,000

3% Notes Payable, due March 31, 2015

180,000

Salaries Payable

127,000

Accumulated Depreciation

114,000

8% Notes Payable, due December 31, 2019

150,000

Estimated Warranty Liability

200,000

Interest Payable

13,000

FICA Tax Payable

10,000

10% Bonds Payable, due December 31, 2015

1,000,000

5% Bonds Payable, due December 31, 2020

1,000,000

Sales Tax Payable

1,000

Unearned Service Revenue

5,000

 

Additional information:

1. $50,000 of the 8% note due December 31, 2019 is due on December 31, 2015.

2. The Estimated Warranty Liability relates to a multiple year product warranty. One-half of the liability will be honored in 2015, and one-half in 2016.

3. The Unearned Service Revenue pertains to a service contract to be performed in 2016.

 

Required:

Prepare the liability section of Lansing Company's balance sheet at December 31, 2014.

 

56) Devin's Animal Shop has the following information for the pay period of March 15 to March 31:

 

Gross payroll$20,000

FICA tax rate7%

Federal income tax withheld15%

 

Required:

Prepare the journal entry to record the accrued payroll on March 31 and the journal entry to remit the payroll taxes to the government on April 15. Omit explanations.

57) The following information is available for a retail store for the month of February:

 

1. Wahlberg Computers sells computers for $2,500 each on account. On February 1, Wahlberg sold 20 computers. The cost of each computer sold was $1,000. The store uses the perpetual inventory system.

2. It is estimated that the warranty expense is 5% of gross sales. A journal entry is prepared on February 1.

3. During February, Wahlberg replaced two computers due to product warranty complaints for products purchased in a prior month.

4. A customer fell in the store and is seeking $100,000 in damages. Wahlberg's attorney believes the case is frivolous because the customer has similar lawsuits pending against other retail stores.

5. A customer is suing Wahlberg Computers for $100,000 because the customer's computer purchased from Wahlberg Computers started on fire and destroyed the customer's residence. Wahlberg's attorney believes the customer will probably win the case and receive $100,000.

 

Required: Prepare the journal entries to record the transactions above. Omit explanations.

Dec 19 2019 View more View Less

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