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Sport Pro Magazine sold 26,400 annual subscription...

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Sport Pro Magazine sold 26,400 annual subscriptions on August 1, 2012, for $22 each. Prepare Sport Pro?s (a) August 1, 2012, journal entry and (b) the December 31, 2012, annual adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) 8/1/12 (b) 12/31/12 Lexington Corporation?s weekly payroll of $26,080 included FICA taxes withheld of $1,890, federal taxes withheld of $3,030, state taxes withheld of $760, and insurance premiums withheld of $500. Prepare the journal entry to record Lexington?s payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit On December 31, 2012, Alexander Company had $1,258,500 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 23,410 shares of its common stock for $40 per share, receiving $936,400 proceeds after brokerage fees and other costs of issuance. On February 2, 2013, the proceeds from the stock sale, supplemented by an additional $322,100 cash, are used to liquidate the $1,258,500 debt. The December 31, 2012, balance sheet is issued on February 23, 2013. Show how the $1,258,500 of short-term debt should be presented on the December 31, 2012, balance sheet. ALEXANDER COMPANY Partial Balance Sheet December 31, 2012 Selzer Equipment Company sold 566 Rollomatics during 2012 at $6,470 each. During 2012, Selzer spent $24,200 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. (a) Prepare 2012 entries for Selzer using the expense warranty approach. Assume that Selzer estimates the total cost of servicing the warranties will be $121,000 for 2 years. Use "Inventory" account to record the warranty expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To record the sale) 2. (To record the warranty expense) 3. (To record the warranty liabilitiy) (b) Prepare 2012 entries for Selzer assuming that the warranties are not an integral part of the sale. Assume that of the sales total, $178,300 relates to sales of warranty contracts. Selzer estimates the total cost of servicing the warranties will be $121,000 for 2 years. Estimate revenues earned on the basis of costs incurred and estimated costs. Use "Inventory" account to record the warranty expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To record the sale) 2. (To record the warranty expense) 3. (To record the estimated revenues)

 

Paper#7722 | Written in 18-Jul-2015

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