Accounting for note payable LO P1
Sylvestor Systems borrows $121,000 cash on May 15, 2015, by signing a 120-day, 4% note.
1. On what date does this note mature?
September 11, 2015
September 12, 2015
September 13, 2015
September 14, 2015
September 15, 2015
2. Assume the face value of the note equals $121,000, the principal of the loan.
(a) Prepare the journal entry to record issuance of the note.
Exercise- Interest-bearing notes payable with year-end adjustments
Keesha Co. borrows $245,000 cash on December 1, 2015, by signing a 90-day, 9% note with a face value of $245,000.
1. On what date does this note mature? Assume a 365 day year.
February 24, 2016.
February 25, 2016.
February 26, 2016.
February 27, 2016.
February 28, 2016.
2. What is the amount of interest expense in 2015 and 2016 from this note? (Use 360 days a year. Do not round intermediate calculations.)
Exercise- Payroll-related journal entries
BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.60% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
| |
Gross Pay through August |
Gross Pay for September |
| a. |
$ |
6,100 |
$ |
2,400 |
Prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $372.00 for this pay period. (Round your answers to 2 decimal places.)