Exercise 8-5 1.$6,000,000× 0.11×6/12=$330,000 2.$6,000,000× 0.09×3/12=$135,000 3.$6,000,000× 0.10×4/12=$200,000 4.$6,000,000× 0.07×7/12=$245,000 Problem 8-2A Requirement 1 (a).October 1, 2024 Cash41,000,000 Notes Payable41,000,000 (Issuance of notes payable) (b).October 1, 2024 Notes Receivable41,000,000 Cash41,000,000 (Acceptance of notes receivable) Requirement 2 (a).December 31, 2024 Interest Expense ($41 million×9%×3/12)922,500 Interest Payable922,500 (Interest expense incurred, but not paid) (b).December 31, 2024 Interest Receivable922,500 Interest Revenue922,500 (Interest revenue earned, but not received)
Requirement 3 (a)September 30, 2025 Notes Payable41,000,000 Interest Payable($41 million × 9% × 3/12)922,500 Interest Expense($41 million × 9% × 9/12)2,767,500 Cash44,690,000 (Payment of notes payable and interest) (b).September 30, 2025 Cash44,690,000 Interest Receivable($41 million × 9% × 3/12)922,500 Interest Revenue($41 million × 9% × 9/12)2,767,500 Notes Receivable41,000,000 (Collection of notes receivable and interest) Exercise 8-9 January 31 Salaries Expense 600,000 Employee Income Tax Payable120,000 FICA Tax Payable($600,000 × 0.0765) 45,900 Salaries Payable (to balance)434,100 (Employee salary expense) January 31 Payroll Tax Expense(total) 83,100 FICA Tax Payable($600,000 × 0.0765) 45,900 Unemployment Tax Payable($600,000 × 0.062)37,200 (Employer payroll tax expense)
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