Showbiz Video completed the following payroll transactions during the first two weeks of December. Showbiz Video pays its employees on a biweekly basis (every two weeks). In your working papers: 1. Record the December 13 transactions on page 38 in the general journal. 2. Post both payroll entries to the appropriate general ledger accounts. 3. Journalize and post the December 16 transactions. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Dec. 13} & \text{Wrote Check 2206 to pay the payroll of \$3,840.58 (gross}\\ \text{ } & \text{earnings) for the pay period ending December 13. The}\\ \text{ } & \text{following amounts were withheld: FICA taxes, \$238.12 for}\\ \text{ } & \text{social security and \$55.69 for Medicare; employees’ federal}\\ \text{ } & \text{income taxes, \$639.00; employees’ state income taxes, \$96.02;}\\ \text{ } & \text{insurance premium, \$21.00; U.S. savings bonds, \$20.00.}\\ \text{13} & \text{Recorded the employer’s payroll taxes (FICA tax rates, 6.2\\% for}\\ \text{ } & \text{social security and 1.45\\% for Medicare; federal unemployment}\\ \text{ } & \text{tax rate, 0.8%; state unemployment tax rate, 5.4%). No}\\ \text{ } & \text{employee has reached the maximum taxable amount.}\\ \text{16} & \text{Paid the amounts owed to the federal government for }\\ \text{ } & \text{employees’ federal income taxes and FICA taxes, Check 2215. }\\ \text{16} & \text{Purchased U.S. savings bonds for employees for \$100.00, }\\ \text{ } & \text{Check 2216. }\\ \text{16} & \text{Paid \$148.00 to American Insurance Company for employees’}\\ \text{ } & \text{insurance, Check 2217.}\\ \end{array} $$ Identify the payroll accounts that have a balance after entries have been posted.

The totals of the payroll register for Kits & Pups Grooming are shown in your working papers. On December 31 the owner, Abe Shultz, wrote Check 1400 to pay the payroll. In your working papers: 1. Record the payroll entry in the general journal. 2. Post the entry to the general ledger accounts.

The accounting document that provides a basis for recording payroll transactions is a. the payroll register. b. the employee earnings records. c. the general ledger. d. the general journal.

For each of the total gross earnings amounts recorded in the past five pay weeks for Hot Suds Car Wash, determine these taxes: -employer’s FICA taxes (social security 6.2%, Medicare 1.45%) -federal unemployment tax (.8%) -state unemployment tax (5.4%). Use the form provided in the working papers. None of the employees has reached the taxable earnings limit. Total gross earnings: 1. $914.80 2.$1,113.73 3. $2,201.38 4.$791.02 5. $1,245.75

River’s Edge Canoe & Kayak is a merchandising business in Wyoming. The partial chart of accounts follows:

$$\begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{101 Cash in Bank} & \text{401 Sales}\\ \text{115 Accounts Receivable} & \text{405 Sales Discounts}\\ \text{135 Supplies} & \text{410 Sales Returns and Allowances}\\ \text{215 Sales Tax Payable} & \text{ }\\ \end{array}$$

$$\begin{array}{ll} \text{Accounts Receivable Subsidiary Ledger} & \text{ }\\ \text{ADV Adventure River Tours} & \text{WILD Wildwood Resorts}\\ \text{DRA Drake, Paul} & \text{WU Wu, Kim}\\ \end{array}$$

Record January transactions on page 10 of the general journal.

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Jan. 1} & \text{Sold \$2,000 in merchandise on account to Wildwood Resorts,}\\ \text{ } & \text{a tax-exempt agency, credit terms 3/15, n/30, Sales Slip 103.}\\ \text{5} & \text{Granted Wildwood Resorts a \$150 credit allowance for}\\ \text{ } & \text{defective merchandise, Credit Memorandum 33.}\\ \text{8} & \text{Received \$485 from Adventure River Tours for \$500 in}\\ \text{ } & \text{merchandise sold to it on Dec. 27 less a $3\\\%$ cash discount of }\\ \text{ } & \text{\$15, Receipt 96.}\\ \text{10} & \text{Sold \$500 in merchandise plus a 5\\\% sales tax of \$25 to Paul}\\ \text{ } & \text{Drake on account, credit terms 3/15, n/30, Sales Slip 104.}\\ \text{12} & \text{Received a check for \$1,794.50 from Wildwood Resorts on}\\ \text{ } & \text{account (\$1,850 less a 3\\\% cash discount of \$55.50), Receipt 97.}\\ \text{15} & \text{Cash sales were \$3,500 plus sales tax of \$175, Tape 22.}\\ \text{15} & \text{Bankcard sales amounted to \$4,000 plus sales tax of \$200,}\\ \text{ } & \text{Tape 22.}\\ \text{20} & \text{Sold to Adventure River Tours \$75 in supplies. Cash received}\\ \text{ } & \text{recorded on Receipt 98.}\\ \text{22} & \text{Granted Kim Wu \$63 credit for \$60 in damaged merchandise }\\ \text{ } & \text{sold to her last month and 5\\\% sales tax of \$3 on the}\\ \text{ } & \text{merchandise, Credit Memorandum 34.}\\ \text{25} & \text{Paul Drake sent a check for \$510 in payment of his account.}\\ \text{ } & \text{The account balance was \$525 (\$500 in merchandise and}\\ \text{ } & \text{\$25 sales tax). He took a 3\\\% cash discount of \$15 on the }\\ \text{ } & \text{merchandise, Receipt 99.}\\ \end{array}$$

Compute the amount of cash that would have been collected in January if customers had not taken any cash discounts.

The general ledger for Show biz Video shows the following at December 31:

$$\begin{array}{llll} \mathbf{\text{General Ledger }} & \text{ } & \text{ } & \text{ }\\ \text{101 Cash in Bank} & \text{$12,000$} & \text{207 Accts. Pay. -} & \text{ }\\ \text{105 Accts. Rec. - G. Cohen} & \text{$3,000$} & \text{New Media Suppliers} & \text{$3,000$}\\ \text{110 Accts. Rec. - J. Coletti} & \text{900} & \text{209 Accts. Pay. - Palace Films} & \text{$14,000$}\\ \text{113 Accts. Rec. - Flannery} & \text{$1,800$} & \text{301 Greg Failla, Capital} & \text{$33,775$}\\ \text{115 Accts. Rec. - Spring} & \text{ } & \text{305 Greg Failla, Withdrawals} & \text{$4,000$}\\ \text{Branch School District} & \text{$1,500$} & \text{310 Income Summary} & \text{\_\_\_}\\ \text{130 Office Equipment} & \text{$5,000$} & \text{401 Video Rental Revenue} & \text{$9,600$}\\ \text{135 Office Furniture} & \text{$8,000$} & \text{405 VCR Rental Revenue} & \text{$3,500$}\\ \text{140 Computer Equipment} & \text{$10,000$} & \text{501 Advertising Expense} & \text{$1,600$}\\ \text{145 Video Tapes} & \text{$20,000$} & \text{505 Equipment Repair} & \text{ }\\ \text{150 Video Equipment} & \text{$9,000$} & \text{Expense} & \text{$1,200$}\\ \text{201 Accts. Pay. - Broad Street} & \text{ } & \text{510 Maintenance Expense} & \text{400}\\ \text{Office Supply} & \text{400} & \text{520 Rent Expense} & \text{$1,000$}\\ \text{205 Accts. Pay.} & \text{ } & \text{530 Utilities Expense} & \text{375}\\ \text{Computer Horizons} & \text{15,500} & \text{ } & \text{ }\\ \end{array}$$

Using the preceding account names and balances: 1. Prepare the six-column work sheet. The period covered is one month. 2. Prepare the financial statements. Greg Failla invested $10,000 during the month. 3. Record the closing entries on page 12 of the general journal. 4. Post the closing entries. 5. Prepare a post-closing trial balance.

Greg Failla owns Showbiz Video. He uses the following accounts to record business transactions.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accounts Payable—}\\ \text{105 Accounts Receivable—} & \text{Computer Horizons}\\ \text{Gabriel Cohen} & \text{207 Accounts Payable—}\\ \text{110 Accounts Receivable—} & \text{New Media Suppliers}\\ \text{James Coletti} & \text{301 Greg Failla, Capital}\\ \text{140 Computer Equipment} & \text{305 Greg Failla, Withdrawals}\\ \text{145 Video Tapes} & \text{401 Video Rental Revenue}\\ \text{ } & \text{405 VCR Rental Revenue}\\ \text{ } & \text{505 Equipment Repair Expense}\\ \text{ } & \text{520 Rent Expense}\\ \text{ } & \text{530 Utilities Expense}\\ \end{matrix}$$

For each transaction: 1. Prepare a T account for each account listed above. 2. Analyze and record each of the following transactions using the appropriate T accounts. Identify each transaction by number. 3. After recording all transactions, compute a balance for each account. 4. Test for the equality of debits and credits.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{1. Greg Failla invested $\$ 17,500$ cash in Showbiz Video.}\\ \text{3} & \text{2. Purchased computer equipment on account from Computer Horizons for $\$ 2,400$.}\\ \text{8} & \text{3. Purchased videos on account from New Media Suppliers for $\$ 375.$}\\ \text{10} & \text{4. Paid monthly rent of $\$ 750$, Check 1183.}\\ \text{13} & \text{5. Wrote Check 1184 to pay for new videos, $\$ 265$.}\\ \text{14} & \text{6. Sent a bill for $\$ 67$ to Gabriel Cohen for a VCR rental.}\\ \text{16} & \text{7. Deposited the receipts from video rentals, $\$ 233$.}\\ \text{19} & \text{8. Paid the gas and electric bill of $\$ 125,$ Check $1185 .$}\\ \text{21} & \text{9. Sent Check 1186 for $\$ 375$ to New Media Suppliers as payment on account.}\\ \text{22} & \text{10. Greg Failla withdrew $\$ 150$ for his personal use, Check $1187 .$}\\ \text{25} & \text{11. Paid $\$ 45$ for $\mathrm{VCR}$ repair, Check 1188.}\\ \text{30} & \text{12. Deposited VCR rental receipts of $\$ 264$ in the bank.}\\ \end{array}$$

From the following Company R adjusted trial balance, prepare the following:

E. Post-Closing Trial Balance

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}44,000}\\ \text{Accounts Receivable}&\text{\hspace{10pt}13,800}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,400}\\ \text{Land}&\text{\hspace{10pt}16,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,900}\\ \text{Salaries Payable}&&\text{\hspace{15pt}4,500}\\ \text{Common Stock}&&\text{\hspace{10pt}31,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}10,200}\\ \text{Dividends}&\text{\hspace{10pt}12,000}\\ \text{Service Revenue}&&\text{\hspace{10pt}86,000}\\ \text{Insurance Expense}&\text{\hspace{15pt}7,600}\\ \text{Salaries Expense}&\text{\hspace{10pt}32,000}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{10pt}14,800}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}146,600}}}&\underline{\underline{\text{\$\hspace{1pt}146,600}}}\\ \end{array}$$

The 2011 roster of the Dallas Cowboys professional football team included 7 defensive linemen. Their weights (in pounds) were 321, 285, 300, 285, 286, 293, and 298. Calculate the mean. Show your work.

Assuming the following Adjusted Trial Balance, recreate the Post-Closing Trial Balance that would result after all closing journal entries were made and posted:

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{1pt}17,900}\\ \text{Accounts Receivable}&\text{\hspace{10pt}9,900}\\ \text{Supplies}&\text{\hspace{10pt}1,600}\\ \text{Prepaid Insurance}&\text{\hspace{10pt}2,500}\\ \text{Salaries Payable}&&\text{\$\hspace{5pt}8,600}\\ \text{Common Stock}&&\text{\hspace{5pt}10,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}2,800}\\ \text{Dividends}&\text{\hspace{10pt}4,000}\\ \text{Service Fee Revenue}&&\text{\hspace{5pt}37,050}\\ \text{Salaries Expense}&\text{\hspace{5pt}16,900}\\ \text{Supplies Expense}&\text{\hspace{10pt}4,200}\\ \text{Insurance Expense}&\underline{\text{\hspace{10pt}1,450}}&\underline{\text{\hspace{34pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}58,450}}}&\underline{\underline{\text{\$\hspace{1pt}58,450}}}\\ \end{array}$$

Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March:

a. Opened a business bank account with a deposit of $\$ 50,000$ from personal funds.
b. Purchased supplies on account, $\$ 4,000$.
c. Paid creditors on account, $\$ 2,300$.
d. Received cash from fees earned on insurance commissions, $\$ 13,800$.
e. Paid rent on office and equipment for the month, $\$ 5,000$.
f. Paid automobile expenses for the month, $\$ 1,150$, and miscellaneous expenses, $\$ 300$.
g. Paid office salaries, $\$ 2,500$.
h. Determined that the cost of supplies on hand was $\$ 2,700$; therefore, the cost of supplies used was $\$ 1,300$.
i. Billed insurance companies for sales commissions earned, $\$ 12,500$.
j. Withdrew cash for personal use, $\$ 3,900$.

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

$$\begin{array}{c} \begin{array}{ccc} \begin{array}{ccccc} && \text{Assets}\\ \hline && \text{Accounts}\\ \text{Cash} & + & \text{Receivable} & + & \text{Supplies} \end{array} & \begin{array}{c} =\\ \\ = \end{array} & \begin{array}{ccccccccccccccccc} \text{Liabilities} & + &&&&&&& \text{Owner’s Equity}\\ \hline \text {Accounts} && \text {Amy Austin,} && \text {Amy Austin,} && \text {Fees} && \text {Rent } && \text { Salaries} && \text {Supplies } && \text { Auto } && \text { Misc. } \\ \text { Payable } & + & \text { Capital } & - & \text { Drawing } & + & \text { Earned} & - & \text {Expense} & - & \text {Expense} & - & \text {Expense} & - & \text {Expense} & - & \text {Expense } \\ \end{array} \end{array} \end{array}$$

2. Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreased owner's equity.
3. Determine the net income for March.
4. How much did March's transactions increase or decrease Amy Austin's capital?

Progressive Insurance asked customers who had been involved in auto accidents how far they were from home when the accident happened. The data are summarized in the table.

$$\begin{array}{l|c} \text {Miles from Home } & \text { \% of Accidents } \\ \hline \text {Less than } 1 & 23 \\ 1 \text { to } 5 & 29 \\ 6 \text { to } 10 & 17 \\ 11 \text { to } 15 & 8 \\ 16 \text { to } 20 & 6 \\ \text { Over } 20 & 17 \end{array}$$

Create an appropriate graph of these data.

You are on the staff of a member of the U.S. Senate who is considering a bill that would provide government-sponsored insurance for nursing-home care. You report that 1128 letters and emails have been received on the issue, of which 871 (77%) oppose the legislation. "I'm surprised that most of my constituents oppose the bill. I thought it would be quite popular," says the senator. Explain why this sampling method is biased. Is 77% likely greater than or less than the percentage of all the senator's constituents who oppose the legislation?

The unadjusted trial balance and adjustment data of Mark's Motors at December 31, 2016, follow:

$$\begin{array}{c} \textbf{FARMER INVESTMENT ADVISERS}\\ \text{Unadjusted Trial Balance}\\ \text{December 31, 2016}\\ \end{array}$$

$$\begin{array}{lrr} &\textbf{Balance}\\ \textbf{Account Title}&\textbf{Debit}&\textbf{Credit}\\ \text{Cash}&\$4,800\\ \text{Accounts Receivable}&26,600\\ \text{Office Supplies}&600\\ \text{Prepaid Insurance}&2,400\\ \text{Equipment}&53,900\\ \text{Accumulated Depreciation - Equipment}&&\$41,500\\ \text{Accounts Payable}&&13,500\\ \text{Wages Payable}&&\\ \text{Unearned Revenue}&&5,500\\ \text{Common Stock}&&18,900\\ \text{Dividends}&4,200\\ \text{Service Revenue}&&16,300\\ \text{Depreciation Expense - Equipment}\\ \text{Wages Expense}&1,500\\ \text{Insurance Expense}&\\ \text{Utilities Expense}&1,700\\ \text{Supplies Expense}&\\ \text{Total}&\underline{\underline{\$95,700}}&\underline{\underline{\$95,700}}\\ \end{array}$$

Adjustment data at December 31, 2016: a. Depreciation on equipment, $1,600. b. Accrued Wages Expense,$1,000. c. Office Supplies on hand, $100. d. Prepaid Insurance expired during December,$200. e. Unearned Revenue earned during December, $4,400. f. Accrued Service Revenue,$800.

2017 transactions: a. On January 4, Mark's Motors paid wages of $1,200. Of this,$1,000 related to the accrued wages recorded on December 31. b. On January 10, Mark's Motors received $1,500 for Service Revenue. Of this,$800 related to the accrued Service Revenue recorded on December 31.

Requirements

1. Journalize adjusting entries.
2. Journalize reversing entries for the appropriate adjusting entries.
3. Refer to the 2017 data. Journalize the cash payment and the cash receipt that occurred in 2017.