McCormack Co. has 20 employees who are paid hourly. All employees receive $20/hour compensation and in addition accrue vacation of 1 day per every 3 months at the rate of $20/hr. At month end the total hours worked by all employees is 200 hours. All employees contribute 7.65% of their wages towards social security and Medicare (FICA). In addition the company matches the same percentage every month. The company also withheld federal taxes which amounted to $850, and paid $250 in FUTA and $120 in SUTA. In addition, the company accrued 10 vacation days in total for the month at the current rate.

a. Record the journal entry to record the payment of salaries to employees.
b. Record the accrual of vacation days.
c. Record the employer liability for the employer taxes.

Hamilton Company purchased a vehicle at a cost of $60,000 On June 1, 2012 by putting a down payment of $20,000 and financing the remainder during a 2 year period. The company pays an interest rate of 6% per year. The balance due will be paid in 4 installments of $10,000 each every 6 months plus interest due. Interest is charged on the balance owed after each installment.
a. Record the purchase of the vehicle on June 1st.
b. Record the first installment payment plus interest on the loan.
c. Record any adjusting entries at year-end 12/31/12
d. Record the second installment payment plus interest.

For getting the instant digital download solution, Please click on the “PURCHASE” link below to get Hamilton Company purchased a vehicle at a cost of $60,000 On June 1, 2012_Answer

For instant digital download of the above solution or tutorial, please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link. Please note that in case of technical glitch, the solutions will be emailed to you within 24 hours.

In case you find any problem in getting the download link or downloading the tutorial, please send us an email on