Question

The Tusquittee Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Tusquittee Company is authorized to issue 100,000 shares of $1 par value common stock and 50,000 shares of 5%, $50 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 6% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month. Following is the chart of accounts for The Tusquittee Company As a new business, all beginning balances are $o. The Tusquittee Company Chart of Accounts Cash Merchandise Inventory Land Building Store Fixtures Accumulated Depreciation Accounts Payable Employee Income Taxes Payable Dividends Payable Common Notes Payable Mortgages Payable Common Stock $1 Par Value Paid-In Capital in Excess of Par Common Paid-In Capital from Treasury Stock Transactions Retained Earnings Treasury Stock Common

Answer 1

Answer:

a) Amortisation schedule for Mrotagege Month Loan Amt Os Instalment It Prinicipal Paid 1-Oct-18 31-Oct-18 30-Nov-18 31-Dec-18 200,000.00 198,908.00$2,425.00$ 1,333.00$1,092.00 197,809.00$2,425.00$ 1,326.00$1,099.00 196,703.00$2,425.00$ 1,319.00$1,106.00 b) Paroll Register for Nov and Mary Smith Sherry Mart Name Salry Monthly Income Tax Health Insurance OASDI (6.2% Medicare (1.45% Net Payable Kete Jones Total $6,000.00$5,000.00$3,000.00$14,000.00 3,250.00 900.00 868.00 203.00 8,779.00 1,800.00 300.00 372.00 87.00 3,441.00 1,000.00 300.00 310.00 72.50 3,317.50 450.00 300.00 186.00 43.50 2,020.50 c) Paroll tax Liabilities for Oct, Nov and Oct-18 Nov-18 Dec-18 Income Tax Health Insurance FUTA (OASDI+Medicare) - Employee FUTA (OASDI+Medicare) - Employer SUTA (5.4%)-Empoyer FUTA (0.6%)-Empoyer $3,250.00 900.00 1071.00 1071.00 756.00 84.00 $3,250.00 $3,250.00 900.00 1071.00 1071.00 756.00 84.00 900.00 1071.00 1071.00 756.00 84.00