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Homework answers / question archive / Jerimiah Electronics completed these selected transactions during September 2018: (Click the icon to view the transactions
Jerimiah Electronics completed these selected transactions during September 2018: (Click the icon to view the transactions.) Requirement 1. Report these items on Jerimiah Electronics' balance sheet at September 30, 2018. Select the balance sheet accounts, then calculate each accounts' balance and the total current liabilities amount at September 3 to the nearest whole dollar. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Jerimiah Electronics Balance Sheet (partial) September 30, 2018 Amount Account Current liabilities: Long-term liabilities:
Question Help actions during September 2018 ce sheet at September 30, 2018 ach accounts balance and the total current liabilities amount at September 30, 2018. (For the FICA tax, be sure to include both the employer and employee share of the tax Round all amounts table leave the box empty, do not select a label or entor a zero.) Amount in Farhan lucht Anwar
et at September 30, 2018. 0 0 cou leg pmployer and 1 Transactions ? a. Sales of $2,150,000 are subject to an accrued warranty cost of 7%. The accrued warranty payable at the beginning of the year was $39,000, and warranty payments for the year totaled $54,000. b. On September 1, Jerimiah Electronics signed a $70,000 note payable that requires annual payments of $14,000 plus 5% interest on the unpaid balance beginning September 1, 2019, c. Jacob, Inc., a chain of discount stores, ordered $110,000 worth of wireless speakers and related products. With its order, Jacob, Inc., sent a check for $110,000 in advance, and Jerimiah shipped $65,000 of the goods. Jerimiah will ship the remainder of the goods on October 3, 2018 d. Jerimiah's September payroll of $260,000 is subject to employee withheld income tax of $30,600 and FICA tax of 7.65%On September 30, Jerimiah pays employees their take-home pay and accrues all tax amounts Print Done
| Jerimiah Electronics: | ||
| Workings | ||
| a. | ||
| Sales | $ 2,150,000 | |
| A | Warranty Liability for the sale @7% | $ 150,500 |
| B | Add: Opening Accrued Balance Warranty Liability | $ 39,000 |
| C | Less: Warranty Payment made for the year | $ 54,000 |
| D | Closing Balance Warranty Liability Sep 30=A+B-C | $ 135,500 |
| Considering Warranty Liabilities are payable within a year and hence Current Liability | ||
| b. | ||
| The first Installment of $14,000 plus | ||
| 6% interet is payable on Sep 1,2019. | ||
| So Current Portion of Note Payable =$14,000 | ||
| Non Current Portion of Note Payable =$56,000 | ||
| On Sep 30, Interest @5% on $70,000 to be accrued | ||
| for one month. | ||
| So Interest Payable on Sep 30=70,000*5%/12= | $ 291.67 | |
| c. | ||
| Advance check Received from Jacob Stores = | $ 110,000 | |
| Amt of Goods Shipped by Sep 30,2018= | $ 65,000 | |
| Goods Shipment due for Oct 3,2018= | 45,000 | |
| So $45,000 will be in the unearned revenue Liability | ||
| account. | ||
| d. | ||
| A | September Payroll Amount | 260,000 |
| B | Income Tax Payable Withheld | 30,600 |
| C | FICA Tax Payable -Employee -Witheld(7.65%) | 19,890 |
| D | September Payroll Paid =A-B-C | 209,510 |
| E | FICA Tax Payable -Employer portion @7.65%= | 19,890 |
| Jerimiah Electronics | |
| Balance Sheet (partial) | |
| September 30,2018 | |
| Account | Amount $ |
| Current Liabilities : | |
| Warranty Liability | $ 135,500.00 |
| Note Payable -Current Portion | $ 14,000.00 |
| Interest Payable | $ 291.67 |
| Unearned Revenue | 45,000 |
| Income Tax Payable (Withheld) | 30,600 |
| FICA Payable-Employee | 19,890 |
| FICA Payable-Employer | 19,890 |
| Long Term Liabilities | |
| Note Payable -Non Current portion | $ 56,000.00 |
