1. New Co purchased equipment on June 15 of the current year and placed it in service on August 1. The following costs were incurred in acquiring the equipment:
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Purchase (invoice) price
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$215,600
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Transportation
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1,400
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Insurance during shipping
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200
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One-year fire insurance beginning August 1 of the current year
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1,200
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Installation cost
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4,000
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Raw materials and direct labor used to test the equipment
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1,000
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Determine the amount to be recorded as cost for the equipment. You must show your work for credit.
2. Record journal entry for a company that disposed of a plant asset. On June 1 of the current year, a company disposed of a truck that had cost $20,000. The truck had a salvage value of $1,000, and a useful life of 5 years. The accounting records showed accumulated depreciation for this truck of $8,000 as of June 1, of the current year. The asset was discarded after an accident, and $10,000 cash was received from an insurance claim. Prepare the journal entry to record the disposal of the truck, including the cash received and gain or loss. Use the date of June 1. show working
Date Account Name Debit Credit
3. The payroll records for ABC Company provided the following data for the current weekly pay period ended February 28:
Employee Earnings end of year previous week Gross pay Federal income tax Health insurance deductions Union dues United way
Poe 5,800 800 120 25 10 10
Rye 6,850 1,100 180 30 10 15
Sim 12,900 1,440 404 40 0 40
Assume that the Social Security portion of the FICA taxes is 6.2% on the first $106,800 and the Medicare portion is 1.45% of all wages paid to each employee for this pay period. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee.
Calculate the net pay for each employee for the current weekly pay period. You must workings