Question 8 At the end of the year, the adjusted trial balance for Drool Corporation contains the following amounts for the income statement accounts (the balance in each account is the normal balance for that type of account). Account Balance Advertising Fees Earned Interest Revenue Wage and Salary Expense Utilities Expense Insurance Expense Depreciation Expense Interest Expense Income Tax Expense Dividends $58,500 2,700 14,300 12,500 7,300 16,250 2,600 3,300 2,000 Required 2. 1. Prepare all necessary journal entries to close Drool Corporation's accounts at the end of the year. Assume that the accountant for Drool forgets to record the closing entries. What will be the effect on net income for the following year?

Question 8 At the end of the year, the adjusted trial balance for Drool Corporation contains the following amounts for the income statement accounts (the balance in each account is the normal balance for that type of account). Account Balance Advertising Fees Earned Interest Revenue Wage and Salary Expense Utilities Expense Insurance Expense Depreciation Expense Interest Expense Income Tax Expense Dividends $58,500 2,700 14,300 12,500 7,300 16,250 2,600 3,300 2,000 Required 2. 1. Prepare all necessary journal entries to close Drool Corporation's accounts at the end of the year. Assume that the accountant for Drool forgets to record the closing entries. What will be the effect on net income for the following year?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section: Chapter Questions

Problem 1AP

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Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 2. Issued Check No. 410 for 3,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 27,046, in payment of 9,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees earnings of December13: social security tax, 4,632; Medicare tax, 1,158; state unemployment tax, 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020, in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees earnings of December27: social security tax, 4,668; Medicare tax, 1,167; state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3,400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries,1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
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Pls answer the following. Show the steps with explanation. Thank you
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