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(Solved by Expert Tutors)Brief Exercise 13-14 (Part Level Submission)
Flint Corporation sells D


Brief Exercise 13-14 (Part Level Submission)
Flint Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2017, Flint sold 20,000 warranty contracts at $126 each. The corporation spent $178,000 servicing warranties during 2017, and it estimates that an additional $890,000 will be spent in the future to service the warranties.

Part C) Prepare Flint?s journal entry for the recognition of warranty revenue. Assume the service costs are inventory costs.

-------------------------------------------------------------------------------------------------------------------------------Exercise 13-3 (Part Level Submission)

Ayayai Company began operations on January 2, 2016. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Actual Hourly
Wage Rate

Vacation Days Used
by Each Employee

Sick Days Used
by Each Employee

2016

2017

2016

2017

2016

2017

$8

$9

0

9

4

5


Ayayai Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

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Prepare journal entries to record transactions related to compensated absences during 2016 and 2017.

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Exercise 13-7

Sheffield Hardware Company?s payroll for November 2017 is summarized below.

Amount Subject to Payroll Taxes

Unemployment Tax

Payroll

Wages Due

FICA

Federal

State

Factory

$122,200

$122,200

$36,200

$36,200

Sales

33,500

33,500

3,900

3,900

Administrative

35,500

35,500

Total

$191,200

$191,200

$40,100

$40,100


At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee?s wages to $118,500 and 1.45% in excess of $118,500. Of the $191,200 wages subject to FICA tax, $21,600 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,800 for factory, $7,000 for sales, and $6,100 for administrative.

A) Prepare a schedule showing the employer?s total cost of wages for November by function.
B)Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes. (For multiple debit/credit entries, li

 


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