Dixon Sales has five sales employees that receive weekly paychecks. Each earns $10 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% of gross in state income tax, 6% of gross in social security tax, 1.5% of gross in Medicare tax, and 0.5% of gross in state disability insurance. Required: Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. CHART OF ACCOUNTS Dixon Sales General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 221 Sales Wages Payable 222 Social Security Tax Payable 223 Medicare Tax Payable 224 Federal Income Tax Payable 225 State Income Tax Payable 226 Federal Unemployment Tax Payable 227 State Unemployment Tax Payable 228 State Disability Insurance Payable 231 Medical Insurance Payable 232 Retirement Savings Deductions Payable 233 Union Dues Payable 234 Vacation Pay Payable 241 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Sales Wages Expense 525 Delivery Expense 526 Repairs Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 535 Cash Short and Over 536 Product Warranty Expense 541 Payroll Tax Expense 542 Vacation Pay Expense 543 Federal Income Tax Expense 544 State Income Tax Expense 551 Depreciation Expense-Building 552 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7

Dixon Sales has five sales employees that receive weekly paychecks. Each earns $10 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% of gross in state income tax, 6% of gross in social security tax, 1.5% of gross in Medicare tax, and 0.5% of gross in state disability insurance. Required: Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. CHART OF ACCOUNTS Dixon Sales General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 221 Sales Wages Payable 222 Social Security Tax Payable 223 Medicare Tax Payable 224 Federal Income Tax Payable 225 State Income Tax Payable 226 Federal Unemployment Tax Payable 227 State Unemployment Tax Payable 228 State Disability Insurance Payable 231 Medical Insurance Payable 232 Retirement Savings Deductions Payable 233 Union Dues Payable 234 Vacation Pay Payable 241 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Sales Wages Expense 525 Delivery Expense 526 Repairs Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 535 Cash Short and Over 536 Product Warranty Expense 541 Payroll Tax Expense 542 Vacation Pay Expense 543 Federal Income Tax Expense 544 State Income Tax Expense 551 Depreciation Expense-Building 552 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7

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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Question

	Required:
	Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.

CHART OF ACCOUNTS

Dixon Sales

General Ledger

	ASSETS
110	Cash
111	Accounts Receivable
112	Interest Receivable
113	Notes Receivable
115	Inventory
116	Supplies
118	Prepaid Insurance
120	Land
123	Building
124	Accumulated Depreciation-Building
125	Office Equipment
126	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
213	Interest Payable
214	Notes Payable
221	Sales Wages Payable
222	Social Security Tax Payable
223	Medicare Tax Payable
224	Federal Income Tax Payable
225	State Income Tax Payable
226	Federal Unemployment Tax Payable
227	State Unemployment Tax Payable
228	State Disability Insurance Payable
231	Medical Insurance Payable
232	Retirement Savings Deductions Payable
233	Union Dues Payable
234	Vacation Pay Payable
241	Product Warranty Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Sales Wages Expense
525	Delivery Expense
526	Repairs Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
535	Cash Short and Over
536	Product Warranty Expense
541	Payroll Tax Expense
542	Vacation Pay Expense
543	Federal Income Tax Expense
544	State Income Tax Expense
551	Depreciation Expense-Building
552	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense

Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7

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