Question

Revenue tate tar-80, no. F.T Paxable, 3. RI Lawn Service Inc. pays its he state Tax Pavable $5,000, and the employee's hout 10.000 400 200 1,200 c c. pays its hourly employees every Friday. The weekly payroll for hourly employees is me employee's hours are spread evenly from Monday through Friday (they are closed on Cos). During the current year December 31" falls on a Thursday. What adjusting entry does Lawn Service Inc. need to make on December 31" and what entry is made on Friday January Account Debit Credit / W oes - $5,000 Date Waige Expense R6,000 Woge Expense Payable *5.000 e day woge= $1,000*6= 46,000 4. In 2015, Jeffrey Computers sold 10,000 laptops for $500 each. The laptops carry a 1 year attached warranty for repairs. Jeffrey Computers estimates that for every 200 laptops sold 1 laptop will require repairs at a cost of $75. What will Jeffrey Computers record as warranty expense for 20157. 500 $3.750 5.000.000 000300 Total Scule 10.000/200 = 50 Uomber laptops to repair $75X50 - $3.750 worranty expense On January 1, 2015 you take out a $6,000 3-year Installment Note to pay for a car. The interest rate is 7%. Payments are made semi-annually and the payment per period is $1,126.01. Please complete the table. 5. Cash Payment Principal Interest Loan Balance Payment Number 1 2 3

Answer 1

3)Wage rate per day =5000 /5 = $ 1000 per day

Date	Account title	Debit	credit
Dec 31	Wage expense	4000
	Wage payable		4000
	[Being wages accrued for 4 days (Monday -Thursday) :4*1000=4000]
1 Jan	Wage expense	1000
	Wage payable	4000
	cash		5000

**Being salary accrued for one day (Friday) on 1 Jan of next year

4)Number of laptops to be repaired = 10000*1/200 = 50 laptops

Cost of repair = 50 *75 = 3750

Warranty expense= 3750

5)

Payment number	Cash payment [A]	Principal [A-B]	Interest [B]	Loan balance
1	1126.01	1126.01-210= 916.01	6000*3.5%= 210	6000-916.01= 5083.99
2	1126.01	1126.01-177.94= 948.07	5083.99*3.5%= 177.94	5083.99-948.07= 4135.92
3	1126.01	1126.01-144.76= 981.25	4135.92*3.5%= 144.76	4135.92-981.25= 3154.67
4	1126.01	1126.01-110.41= 1015.60	3154.67*3.5%= 110.41	3154.67-1015.60= 2139.07
5	1126.01	1126.01-74.87= 1051.14	2139.07*3.5%= 74.87	2139.07-1051.14= 1087.93
6	1126.01	1126.01-38.08= 1087.93	1087.93*3.5%= 38.08	0

#Semiannual rate = 7/2 =3.5%             [2semiannual period in a year ]