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Fundamentals of financial accounting
CHAPTER 10 – ACCOUNTING FOR PAYROLL
10.1 $2,700
The charge for the salary in the statement of profit or loss is the gross salary
plus the employer’s social security tax contribution. This is $2,500 plus $200, a
total of $2,700
10.2 C
Statement of profit Paid to
or loss employee
$ $
40 × $5 200.00 Gross pay 200.00
Employer’s SS (10%) 20.00 5% SS (10.00)
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Gross wages cost 220.00 Tax (19.00)
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Net pay 171.00
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CHAPTER 11 – ACCOUNTING FOR THE ISSUE OF SHARES
11.1 C
11.2 B
CHAPTER 12 – ACCOUNTING FOR ACCRUALS AND
PREPAYMENTS
12.1 $226,800
Rental income (property 1 and 2)
$ $
01 Jan Balance b/f 2,700 01 Jan Balance b/f 6,150
Statement of profit or
31 Dec loss 226,800 In year Cash received 220,000
31 Dec Balance c/f 3,350 31 Dec Balance c/f 6,700
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232,850 232,850
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Balance b/f 6,700 Balance b/f 3,350
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