P. 1
Accrued Liabilities

Accrued Liabilities

|Views: 50|Likes:
Published by xxstealxx

More info:

Published by: xxstealxx on Mar 07, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as XLS, PDF, TXT or read online from Scribd
See more
See less

03/07/2012

pdf

text

original

MARKRICH SPORTSWORLD, INC.

PROPERTY TAXES PAYABLE DECEMBER 31, 19X2

H-1 CH 2-25-X3

Accrual at 1-1-X2 Accrual for 19X2 Land and Building Personal Properties Valuation Base Assessment Rate Rate of $4 per $100

3,680

400,000 50,000 450,000 0.20 90,000 0.04

√ √ √ √

ᴓ ᴓ

3,600 Total Less Advance Payment Accrual, 12-31-X2 7,280 3,680 3,600 H

Ł

√ ʋ ᴓ Ł

Agreed to tax statement for 19X2 CH Examined approved voucher and cancelled check CH Compared with book values for reasonableness Examined voucher and cancelled check CH

RJE 301 Voucher Payable 303 Property Tax Payable

3,600 3,600

Ms. Some Cash.500 1.320 12-31-X2 Accrued Wages Employees x Days x Daily Rate . Sam Richards. Able Receiver. Lynda Nicole. Tim Collect. Sue Trucker.750 751 ᴓ ᴓ Estimate of Acccrual Taxes Payroll Gross Pay Above Weekly Wages Number of Periods Number of Weeks FICA 34 44 47 50 105 88 88 53 53 53 47 123 34 34 34 34 34 34 34 34 1. PAYROLL REGISTER TEST DECEMBER 31. Jay EMPLOYEE RATE HRS NUMBER 110 6 80 111 112 113 114 115 116 117 118 119 120 121 122 6 80 123 6 80 124 6 80 125 6 80 126 6 80 127 6 80 6 80 128 129 6 80 GROSS PAY 480 625 667 708 1. Reception. Michael Salesman.250 750 750 750 667 1. Dick Salesman. Will Record.667 24 256. Greg Income. Justin Pay. Bill Trucker.008 Wages 2. Harry Receiver.MARKRICH SPORTSWORLD. Bob Jacobs. Order.K. O.250 1. Marc Money.750 480 480 480 480 480 480 480 480 14.057 ᴓ INSURANCE 10 20 20 20 20 20 20 20 20 20 20 20 10 10 10 10 10 10 10 10 310 ᴓ UNITED WAY NET PAY 287 368 393 419 910 754 754 444 444 444 393 1.969 ᴓ Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł ᴓ 5 6 7 7 15 13 13 8 8 8 7 18 5 5 5 5 5 5 5 5 155 Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł Ł ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ Scheduled Prepared By Client  Agreed to approved time cards CH ᴓ Footed and traced to general ledger postings CH ∆ Recalculated extensions and examined payroll checks CH Ł Calculated and traced to employee deduction authorization CH Salaries 10. INC. Tom Salesman. Bob Price.987 ᴓ INCOME TAXES WITHHELD FEDERAL STATE 120 24 156 31 167 33 177 35 375 75 313 63 313 63 188 38 188 38 188 38 167 33 438 88 120 24 120 24 120 24 120 24 120 24 120 24 120 24 120 24 3.160 52 112. 19X2 L-10 CH 1-14-X3 EMPLOYEE Buyer.064 287 287 287 287 287 287 287 287 8.

.

12-31-X2 9 5 45 48 2.160 $ $ .

H .

19X3) .945 Ł H ʋ Traced to sales register and sales summary for December CH  Traced to rates per sales tax forms CH Ł Examined approved voucher completed sales tax form and cancelled check (paid in January.100 155 2. INC.MARKRICH SPORTSWORLD.000 ʋ 5%  3. 19X2 H-3 CH 2-9-X3 Retail sales for Decemver. 19X2 Combined state and local sales tax rate Monthly sales tax collected Less processing fee of 5%  Accrual at 12-31-X2 62. SALES TAXES PAYABLE DECEMBER 31.

1-1-X2 Payment in 19X2 Exceed accrual Less client entry to elliminate excess with offset to miscellaneous 19X2 monthly accrual: State 12 at $333.000 4.819 2.000 4. approved vouchers and tax returns CH .849 Ł 151 (151) 4.819 2.346 53 3.548 452 8.552  Total Excess Accrual Accrual at 12-31-x2 12.284 716 4.284 H-4 CH 2-25-X3 FEDERAL INCOME TAXES 10. INC.000 H 36.000 H 36.552 3.000 5.947 1.000 4.000 12.33 Federal 12 at $1.500 2.000  Agreed to tax rates per state and federal tax returns CH Ł Examined cancelled checks.000  45% of $ 4.048 7.838 Ł 162 (162) Balance.346 53 32.835 3.947 1.000) 8.MARKRICH SPORTSWORLD.000 AJE 308 Federal Income Taxes Payable 905 Federal Income Taxes 4.000 3.000 9.000 (4.284 29. INCOME TAXES ACCRUALS DECEMBER 31.000 Acccrual at 12-31-X2 (unadjusted) Less AJE Accrual at 12-31-X2 Earnings in 19X2 before taxes Less dividends exclusion Less excluded portion of gain on stock sales Add nondeductible loss on asset trade Less state income taxes Taxable base Tax rate State 10%  Federal 22% of $25. 19X2 STATE INCOME TAXES 4.

000 ⱷ (60.000 INTEREST EXPENSE ⱷ ⱷ 27.500) (30.750 (16.000 90. 19X2 Interest expense for 19X2 : ($180.250 H ∆ ∆ 15.500 Sun United Bank Beginning Balance Payment annual installments Feb 1.000) INTEREST PAYABLE 33.000 60.750 41. Beginning Balance Payment annual installments Feb 1.000) 16.000 ⱷ 30.000 360.500 13.500 (33.000 x 10% x 1/12)-January ($150.000 x 10% x 1/12)-January ($300.000 ∆ 60.000 x 10% x 11/12) Payment annual interest Feb 1.000 ∆ 27.750 L ⱷ Agreed to ending balance at 12-31-19X1 CH  Computed interest and traced to expense CH ∆ Footed CH .250 45.000 ⱷ (30.000) 1. 19X2 Interest expense for 19X2 : ($360.000 30.500 ∆ 30. 19X2 NOTES PAYABLE (LONG-TERM) Worldwide Insurance Co.000 I ∆ ∆ 30.750 120. 19X2 Installment reclassification Balance at 12-31-X2 300.000 I-3 CH 1-17-X3 NOTES PAYABLE CURRENT 60. INC. 19X2 Installment reclassification Balance at 12-31-X2 Combined at 12-31-X2 150.000) 3.000 27.000 x 10% x 11/12) Payment annual interest Feb 1.000) (60. NOTES PAYABLE AND INTEREST DECEMBER 31.500 240.500 ⱷ 13.MARKRICH SPORTSWORLD.000 I ∆ ∆ 13.

INTEREST EXPENSE √ √ ∆ √ √ ∆ ∆ L .

MARKRICH SPORTSWORLD.400 2.400 12. 19X2 SHAREHOLDERS NUMBER OF SHARES 2000 2000 2000 2000 2000 10000 ᴓ ᴓ ᴓ ᴓ ᴓ DIVIDEND PER SHARE 1.000 H Michael Richards Marc Jacobs Ms.20 6. INC.20 1.400 2. ACCRUED DIVIDENDS DECEMBER 31.400 2.00      H-5 CH 1-8-X3 DIVIDEND PAYABLE 2.20 1.400 2.20 1. Nicole Lynda Money Tina Sanders Total  Traced to Board of Directors' Minutes CH ᴓ Examined corresponding stock certificate register for issuance entries CH .20 1.

19X2 H CH 1-8-X3 PER BOOKSADJUSTMENTS FINAL 12-31-X2 12-31-X2 303 Property Taxes Payable 3.738 306 Sales Taxes Payable 2.160 L-10 305 Accrued Payroll Taxes 5.600 H-1 304 Salaries and Wages Payable 2.000 H-5 Based on the study of internal controls and the results of audit tests performed. 19X2 CH .000) 8.000 (4. INC.945 2.000 H-4 308 Federal Income Taxes Payable 12.MARKRICH SPORTSWORLD.000 4.250 I-3 310 Dividends Payable 12.000 H-4 309 Interest Payable 41.000 12.945 H-3 307 State Income Taxes Payable 4. it is my opinion that the accruals are fairly stated at December 31.160 2. ACCRUED LIABILITIES DECEMBER 31.600 3.250 41.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->