1. 1. Where is the store based?
2. How do I pay for my order? Is it secure?
3. How much does shipping cost?
4. How long will it take for me to receive my order?
6. I did not get what I ordered. What do I do?
7. Can I return/exchange my t-shirt?
Payroll Chapter
Homework Assignment
Problem 1
Dave earns $16 per hour for up to 40 hours. Over 40 hours is
paid at time and one half.
Assume the FICA tax rate of 7.65% (6.2% for social security,
1.45% for medicare) with
the social security limit of $102,000 of annual earnings. Using
the information below,
calculate Dave's paycheck:
Hours worked this week: 44
Year-to-date earnings before this week: $101,200
Federal income tax: 20%

2. Medical withholding: $60
Problem 2
Assume that the total earnings of all the employees for this
payroll period is $800,000.
Of the $800,000, $90,000 is exempt from social security as a
group of employees are
over the annual limit. Also assume that $25,000 was earned by
employees who had not
yet earned $7,000 for the year. Calculate the employer's payroll
tax expense for the
week assuming the rates of 5.4% state unemployment and .8%
federal unemployment.
Problem 3
Assume the following for the Smith Company:
Total salaries earned:
Administrative $15,000
Sales salaries $10,000
Total $25,000
Withholdings:
FIT $4,750

3. Social Security $1,550
Medicare $363
Medical insurance $1,200
United Way $250
Total $8,113
Assume the following tax rates:
FICA 7.65% - no employee has gone over the $102,000 limit
FICA tax
SUTA 5.4% - only $8,000 of the above payroll is still subject
to this tax
FUTA .8% - only $8,000 of the above payroll is still subject
to this tax.
Required:
a. Record the general journal entry for the above payroll.
b. Record the general journal entry for the related employer
payroll taxes.
Problem 4
Prior Week
EE Hours Rate Salary FIT Medical YTD Earnings Dept

4. Leonard 40 $16 $125 $30 $6,500 Office
James 45 $18 $200 $50 $54,000 Office
McIntire $5,000 $500 $50 $125,400 Admin
Johnson $2,500 $300 $50 $100,700 Admin
Rose 42 $14 $100 $4,000 Office
Assume the following:
Overtime after 40 hours at time and one-half.
FICA - Social security 6.2% on the first $102,000 of annual
earnings
Medicare 1.45%
SUTA - 5.4% of the first $7,000 of annual earnings
FUTA - .8% of the first $7,000 of annual earnings
Required:
a. Record the payroll entry for the current week.
b. Record the employer payroll tax for the current week.
c. Record the entry to pay the FICA for the current week.
Current week
As part of the course, you will be required to complete and
submit an information literacy/plagiarism assignment at the end

5. of the course (Pod 8). The assignment details are below, and
you will have the entire course to complete the assignment
before the final submission.
Assignment Introduction
Sandra and Pierre want to start a business. Pierre has $200,000
in cash and Sandra $350,000 in cash and equipments to invest
into the business. Their consultants recommend the use of a
partnership instead of sole proprietorship and corporation.
Identify and explain the principal characteristics of the
partnership form of business organization. Explain the current
challenges to partnerships that these two partners may face.
Assignment Instructions
The writing assignment will demonstrate competence on the
partnership objective in a 2 to 5 page paper (300 to 700 words).
Your paper must show at least three articles including two (2)
external scholarly journal references. Please review the APA
6th ed. guidelines to assist you in formatting your paper.
Two of the references must come from the Mount Washington
College Library. Some references such as WIKIPEDIA will not
be accepted. To cite an article with the proper APA format, you
may click on the CITE button from the online library site.
The assignment will be evaluated according to the following
Writing Assignment Grading Criteria:
· APA Formatting Help
· Article in Mount Washington Library
The following rubric will be used to assess your final product:
· ACCT112 Information Literacy Assignment Rubric
This assignment will be due at the end of Pod 8.
Partnership Homework Assignments
Problem 1

6. Woodman and Young decide to form a partnership. Woodman
owned a previous business before joining
Young. The balances on Woodman's books and the associated
fair market values are shown below:
Books
Agreed
Fair Value
Cash 5,000$ 5,000$
Accounts Receivable 95,000 90,000 (they agree that
$5,000 will never be collected)
Inventory 80,000 90,000 (they agree that inventory
should be $90,000)
Equipment 125,000 35,000 (they agree that replacement
value is $35,000)
Accum. Depreciation 100,000
Accounts Payable 75,000 75,000
Required:
Journalize the investment by Woodman into the partnership
Problem 2
Franks and Bean decide to form a partnership with initial
investments of $80,000 and $90,000. Determine

7. their respective shares of this year's net income of $125,000
under the following partnership agreement:
1. Each partner is to receive 10% on their original investments
2. Partners would receive salary allowances, $35,000 to Franks,
and $25,000 to Bean
3. The remainder shared in a ratio of 3:1
Problem 3
Wyatt is admitted into the partnership of Johnson and Gath.
Prior to his admission, the partnership books
show Johnson's capital balance of $40,000, and Gath's at
$60,000. Johnson and Gath share gains and
losses equally according to the partnership agreement. Compute
and journalize each partner's equity
on the books of the new partnership under the following
scenarios:
a. Wyatt purchases one-half of Johnson's equity for $25,000.
Wyatt pays Johnson
directly.
b. Wyatt invests $60,000 into the partnership and receives 1/4
interest in the partnership.
c. Wyatt invests $60,000 into the partnership and receives 40%
interest in the partnership.
Problem 4

8. Watson is set to retire from the Watson and Kinsler partnership.
The current balance sheet shows the
following capital balances: Watson $75,000 and Kinsler
$60,000. The partnership states that Watson and
Kinsler share gains/losses in a ratio of 2/5 to 3/5. The partners
agree to write down receivables by $2,000,
and write up inventory by $10,000.
Required:
a. Journalize the revalution of the partnership assets.
b. Journalize the withdrawal of Watson from the partnership
assuming that he is to
receive cash for his equity in the business.
Problem 5
The partnership of Boyd, Carlson, and Dove is going out of
business. Prior to liquidation, the accounting
records show the following balances: Cash of $9,000, All other
assets of $57,000, Accounts Payable of
$20,000, Boyd Capital of $20,000, Carlson Capital of $15,000,
and Dove Capital of $11,000. The partners
share gains/losses in ratio of 40%,30%, 30% respectively. The
partners sold the noncash assets for
$77,000, paid the liabilities, and gave the remaining cash to the

9. partners.
Required:
Prepare a liquidation schedule as shown on the last side of the
PowerPoint, and journalize
each step of the liquidation process.
Mount Washington College
Accounting II - Quiz 6
Question 1
Carroll Company has stock outstanding as follows: 15,000
shares of 5% cumulative
preferred stock at $100 par, and 100,000 shares of common
stock
at $25 par. During its first five years of operations, the
following amounts were
distributed as dividends: first year, $15,000; second year,
$65,000;
third year, $90,000; fourth year, $130,000; fifth year, $250,000.
Required:
Calculate the dividends on each class of stock for each of the
five years.

10. Mount Washington College
Accounting II - Quiz 6
Question 2
Rackers Apparel Inc. was organized March 17, 2005 with an
authorization of 100,000
shares of 10% noncumulative preferred stock, $100 par, and
500,000 shares of
$1 par common stock. The following transactions were
completed during the first
year of operations:
March 17
Issued 40,000 shares of common stock at $4 for
cash.
April 14
Issued 25,000 shares of common stock at $5 for
cash.
May 15 Issued 35,000 shares of preferred stock at $110 for
cash.
Required:
A. Journalize the above transactions.
B. Prepare the Stockholders' Equity section of the balance sheet
assuming
Retained earnings of $50,000.

11. Mount Washington College
Accounting II - Quiz 6
Question 3
The dates of importance in connection with a cash dividend of
$175,000 on Wilson
Corp's common stock are March 10, March 21, and April 9.
Required:
Journalize the entries required on each date.
Mount Washington College
Accounting II - Quiz 6
Question 4
Murray Corporation completed the following treasury stock
transactions:
a. Purchased 3,000 shares of the company's $1 par value stock
for $5 per share.

12. b. Sold 500 shares of the treasury stock for $6 per share.
c. Sold 1,500 shares of the treasury stock for $4.50 per share.
Required:
1. Journalize the entries required on each date.
Mount Washington College
Accounting II - Quiz 5
C. Frederico, Instructor
Question 1
On March 1, Jones and Houston formed a partnership. Jones
and Houston each
contributed to the partnership as follows:
Fair Market
Valuation Per Books
Jones
Cash $ 15,000 $ 15,000
Accounts Receivable $ 47,000 $ 50,000
Inventory $ 65,000 $ 57,000
Equipment $ 40,000 $ 150,000
Accum. Depreciation $ 105,000
Accounts Payable $ 5,000 $ 5,000

13. Notes Payable $ 20,000 $ 20,000
Houston
Cash $ 25,000 $ 25,000
Accounts Receivable $ 55,000 $ 54,000
Inventory $ 75,000 $ 80,000
Equipment $ 35,000 $ 125,000
Accum. Depreciation $ 100,000
Accounts Payable $ 35,000 $ 35,000
Required:
Prepare the journal entries to record the initial investment of the
partners.
Mount Washington College
Accounting II - Quiz 5
Question 2
Westbrook and Tomlinson formed a partnership by investing
$75,000 and $50,000 respectively.
During its first year, the partnership earned $80,000. The
partnership agreement has
the
following income sharing plan:
1. Westbrook is to receive a $20,000 per year based on service.
Tomlinson is to receive a $30,000 per year based on service.
2. 10% interest allowance on their initial investments.

14. 3. Remaining to be divided equally.
Required:
A. Prepare the calculation to show how the income for the first
year is to be divided.
B. Journalize the entry to close the income summary account at
the end of the first year.
Mount Washington College
Accounting II - Quiz 5
Question 3
The partnership of Moats, Jones & Jackson is going out of
business. The partnership
shares income and losses in a ratio of 3:2:1. On May 2, after
discontinuing operations
of the partnership and closing the accounts, the following trial
balance in summary form was
prepared:
Dr. Cr.
Cash $ 25,000
Noncash assets $ 80,000
Liabilities $ 22,000
Moats, Capital $ 28,000
Jones, Capital $ 22,000
Jackson, Capital $ 33,000

15. $ 105,000 $ 105,000
The partners are able to sell the noncash assets for $85,000 and
payoff the debts of $22,000.
Required:
A. Prepare a schedule to show the distribution of cash at
liquidation using the accounting
equation format (any deficits are absorbed by the other
partners):
|-----------------Capital------------------|
Cash + Noncash = Liabilites + Moats + Jones +
Jackson
B. Journalize each step of the liquidation process.
Mount Washington College
Accounting II - Quiz 5
Question 4
Fitzgerald and Johnson, who have capital accounts of $55,000
and
$95,000
respectively, have operated a successful firm for many years,
sharing net income and losses
equally. Moulds is to be admitted to the partnership with an
investment of $60,000

16. in return for which he will receive a 30% interest in the
partnership.
Required
Journalize the entry to reflect this transaction.
Problem 1
Susan earns $22 per hour for up to 40 hours. Over 40 hours is
paid at time and one half.
Assume the FICA tax rate of 7.65% (6.2% for social security,
1.45% for medicare) with
the social security limit of $102,000 of annual earnings. Using
the information below,
calculate Susan's paycheck:
Hours worked this week: 46
Year-to-date earnings before this week: $101,250
Federal income tax: 15%
Medical withholding: $60
Problem 2
Assume that the total earnings of all the employees for this
payroll period is $1,000,000.
Of the $1,000,000, $110,000 is exempt from social security as a

17. group of employees are
over the annual limit. Also assume that $80,000 was earned by
employees who had not
yet earned $7,000 for the year. Calculate the employer's payroll
tax expense for the
week assuming the rates of 5.4% state unemployment and .8%
federal unemployment.
Problem 3
Prior Week
EE Hours Rate Salary FIT Health Ins United Way YTD
Earnings Dept
Parker 40 $17 $100 $35 $10 $54,000 Office
Winfield 47 $12 $125 $65 $15 $6,000 Admin
Hamilton $2,750 $400 $65 $5 $99,750 Admin
Johnson $3,250 $350 $35 $20 $100,700 Admin
Davis 39 $15 $105 $6,500 Office
Walters 65 $25 $275 $65 $5 $101,250 Office
Assume the following:
Overtime after 40 hours at time and one-half.
FICA - Social security 6.2% on the first $102,000 of annual
earnings

18. Medicare 1.45%
SUTA - 5.4% of the first $7,000 of annual earnings
FUTA - .8% of the first $7,000 of annual earnings
Required:
a. Record the payroll entry for the current week.
b. Record the employer payroll tax for the current week.
c. Record the entry to pay the FICA for the current week.
Mount Washington College
Quiz 4
Accounting II
Current week