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On March 1, of the current year the Johnson Company negotiated a, 12%, 1-year, \$100,000 note with Low Mountain Savings and Loan. Show the effects on the accounting equation, by account title: 1. At the origination of the loan. Assets = Liabilities + Equity 2. To record year-end interest. Assets = Liabilities + Equity

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GLICKMAN – ACC111 End of Chapter 11 Test – (40 points) Name: _______________________________________ Please show all calculations!!! PROBLEM #1 – 18 points On March 1, of the current year the Johnson Company negotiated a, 12%, 1-year, \$100,000 note with Low Mountain Savings and Loan. Show the effects on the accounting equation, by account title: 1. At the origination of the loan. Assets = Liabilities + Equity 2. To record year-end interest. Assets = Liabilities + Equity 3. At the maturity of the note. Assets = Liabilities + Equity PROBLEM #2 – 22 points Presented below are the employee payroll records of the Bronsan Company for the week ending November 15, 20XX: Employee’s Name?YTD Earnings?Curr Week Gross Pay?Fed Inc Tax?Medical Ins Ded.??R. Hawn?\$ 25,700?\$ 800?\$ 155?\$ 35??D. Hopkins?930?800?134?35??R. Allen?86,900?1,000?193?42??Ingram?18,400?740?128?42?? Employee’s FICA taxes are withheld at a rate of 6.2% on the first \$87,000 earned for Social Security and 1.45% of all wages for Medicare. Assume a state unemployment tax rate of 5.4% and a federal unemployment tax rate of 0.8% on the first \$7,000 for each employee. Prepare the payroll register for the pay period and then prepare the necessary journal entries to record the payroll and payroll taxes. (Hint: Remember to prepare both employee payroll taxes and employer payroll taxes.) Payroll Register Employee?Gross Pay?Fed Inc Tax?Soc Sec Tax?Medicare Tax?Insurance?Net Pay?????????????????????????????????????????????????? General Journal Date?Description?Debit?Credit??????????????????????????????????????????????????????????????

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