# Week 5 problems | Accounting homework help

### Exercise 9-2

Bliesmer Company incurred the following costs. Indicate to which account Bliesmer would debit each of the costs.

 No. Transactions Account 1. Sales tax on factory machinery purchased \$ 5,000 2. Painting of and lettering on truck immediately upon purchase 700 3. Installation and testing of factory machinery 2,000 4. Real estate broker’s commission on land purchased 3,500 5. Insurance premium paid for first year’s insurance on new truck 1,100 6. Cost of landscaping on property purchased 7,200 7. Cost of paving parking lot for new building constructed 17,900 8. Cost of clearing, draining, and filling land 12,600 9. Architect’s fees on self-constructed building 10,000

### Exercise 9-7

Tanger Company purchased a delivery truck for \$36,000 on January 1, 2014. The truck has an expected salvage value of \$6,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2014 and 12,000 in 2015.

Calculate depreciable cost per unit. (Round answers to 2 decimal places, e.g. 0.50.)

 Depreciable cost per unit. \$:[removed] [removed] \$

### Exercise 9-10

Francis Company owns equipment that cost \$50,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of \$8,000 and an estimated useful life of 5 years.

Prepare Francis Company’s journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 125.)

 (a) Sold for \$28,000 on January 1, 2014. (b) Sold for \$28,000 on May 1, 2014. (c) Sold for \$11,000 on January 1, 2014. (d) Sold for \$11,000 on October 1, 2014.

 No. Account Titles and Explanation Debit Credit (a) [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] (b) [removed] [removed] [removed] [removed] [removed] [removed] (To record depreciation) [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] (To record sale of equipment) (c) [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] (d) [removed] [removed] [removed] [removed] [removed] [removed] (To record depreciation) [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] (To record sale of equipment)

### Problem 9-1A

Ripley Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.

 Debits 1. Cost of filling and grading the land \$ 6,000 2. Full payment to building contractor 780,000 3. Real estate taxes on land paid for the current year 5,000 4. Cost of real estate purchased as a plant site (land \$100,000 and building \$45,000) 145,000 5. Excavation costs for new building 35,000 6. Architect’s fees on building plans 10,000 7. Accrued real estate taxes paid at time of purchase of real estate 2,000 8. Cost of parking lots and driveways 14,000 9. Cost of demolishing building to make land suitable for construction of new building 15,000 \$1,012,000 Credits 10. Proceeds from salvage of demolished building \$ 3,600

Analyze the foregoing transactions using the following column headings. Insert the amounts in the appropriate columns. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

 Item Land Buildings Other Accounts 1. \$[removed] \$[removed] \$[removed] 2. [removed] [removed] [removed] 3. [removed] [removed] [removed] 4. [removed] [removed] [removed] 5. [removed] [removed] [removed] 6. [removed] [removed] [removed] 7. [removed] [removed] [removed] 8. [removed] [removed] [removed] 9. [removed] [removed] [removed] 10. [removed] [removed] [removed] \$[removed] \$[removed]

### Exercise 10-1

 July 1, 2014 Borrows \$60,000 from Fourth National Bank by signing a 9-month, 8% note. Nov. 1, 2014 Borrows \$50,000 from Livingston State Bank by signing a 3-month, 9% note. Dec. 31, 2014 Prepares adjusting entries. Feb. 1, 2015 Pays principal and interest to Livingston State Bank. Apr. 1, 2015 Pays principal and interest to Fourth National Bank.

Prepare journal entries for each of the transactions.
(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

 Date Account Titles and Explanation Debit Credit July 1, 2014 [removed] [removed] [removed] [removed] [removed] [removed] Nov. 1, 2014 [removed] [removed] [removed] [removed] [removed] [removed] Dec. 31, 2014 [removed] [removed] [removed] [removed] [removed] [removed] (Adjusting entry for Fourth National Bank note.) Dec. 31, 2014 [removed] [removed] [removed] [removed] [removed] [removed] (Adjusting entry for Livingstone State Bank note.) Feb. 1, 2015 [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] Apr. 1, 2015 [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed]

### Exercise 10-3

In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales.

 1 Jackson Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales \$30,000 and sales taxes \$1,650. 2 Pearson Company does not segregate sales and sales taxes. Its register total for April 15 is \$20,330, which includes a 7% sales tax.

Prepare the entry to record the sales transactions and related taxes for each client.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

 Date Account Titles and Explanation Debit Credit JACKSON COMPANY Apr. 10 [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] PEARSON COMPANY Apr. 15 [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed]

### Exercise 10-5

Dan Noll’s gross earnings for the week were \$1,780, his federal income tax withholding was \$303, and his FICA total was \$136.

What was Noll’s net pay for the week? (Round answer to 2 decimal places, e.g. 10.50.)

 Noll’s net pay for the week [removed]

Journalize the entry for the recording of his pay in the general journal. (Note: Use Salaries and Wages Payable; not Cash.) (Credit accounts titles are automatically indented when the amount is entered. Do not indent manually. For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)

 Account Titles and Explanation Debit Credit [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed]

Record the issuing of the check for Noll’s pay in the general journal. (Credit accounts titles are automatically indented when the amount is entered. Do not indent manually. Round answer to 2 decimal places, e.g. 10.50.)

 Account Titles and Explanation Debit Credit [removed] [removed] [removed] [removed] [removed] [removed]

### Exercise 10-6

According to the accountant of Ulster Inc., its payroll taxes for the week were as follows: \$137.68 for FICA taxes, \$13.77 for federal unemployment taxes, and \$92.93 for state unemployment taxes.

Journalize the entry to record the accrual of the payroll taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. Round answers to 2 decimal places, e.g. 10.50.)

 Account Titles and Explanation Debit Credit [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed]