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(b) Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Jan. 31 Jan. 31 (to adjust interest expense) Debit Credit H 10 01

(b) Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Jan. 31 Jan. 31 (to adjust interest expense) Debit Credit H 10 01

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H1.

part b please 

 

On January 1, 2022, the ledger of Kingbird, Inc. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, the following selected transactions occurred. Jan. 1 5 12 14 $56,400 7,380 16,400 20 Borrowed $27,600 in cash from Apex Bank on a 4-month, 5%, $27,600 note. Interest will be paid at maturity. Sold merchandise for cash totaling $7,314, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue) Paid state treasurer's department for sales taxes collected in December 2021, $7,380. Sold 800 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company's employees earned wages of $56,000. Withholdings related to these wages were $4,284 for FICA, $4,000 for federal income tax, and $1,200 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.
Transcribed Image Text:On January 1, 2022, the ledger of Kingbird, Inc. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, the following selected transactions occurred. Jan. 1 5 12 14 $56,400 7,380 16,400 20 Borrowed $27,600 in cash from Apex Bank on a 4-month, 5%, $27,600 note. Interest will be paid at maturity. Sold merchandise for cash totaling $7,314, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue) Paid state treasurer's department for sales taxes collected in December 2021, $7,380. Sold 800 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company's employees earned wages of $56,000. Withholdings related to these wages were $4,284 for FICA, $4,000 for federal income tax, and $1,200 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.
Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) (b) Jan 1 Date Jan. 5 Jan. 31 Jan 12 v Jan 20 v v Jan 14 V Jan. 31 Jan. 31 Account Titles and Explanation Cash Notes Payable Cash Sales Revenue Sales Taxes Payable Unearned Service Revenue Service Revenue Sales Taxes Payable Cash Show Transcribed Text Aounts Receivable Sales Revenue Sales Taxes Payable Date Account Titles and Explanation (to adjust interest expense) (to adjust salaries and wages expense) Ĉ I (to adjust payroll tax expense) Debit Debit 27600 7314 11000 7380 40704 Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Credit Credit 27600 6900 414 11000 7380 38400 2304
Transcribed Image Text:Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) (b) Jan 1 Date Jan. 5 Jan. 31 Jan 12 v Jan 20 v v Jan 14 V Jan. 31 Jan. 31 Account Titles and Explanation Cash Notes Payable Cash Sales Revenue Sales Taxes Payable Unearned Service Revenue Service Revenue Sales Taxes Payable Cash Show Transcribed Text Aounts Receivable Sales Revenue Sales Taxes Payable Date Account Titles and Explanation (to adjust interest expense) (to adjust salaries and wages expense) Ĉ I (to adjust payroll tax expense) Debit Debit 27600 7314 11000 7380 40704 Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Credit Credit 27600 6900 414 11000 7380 38400 2304
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