1. On October 10, Tristar purchased machinery for cash. Identify Transactions There are generally three steps to making a journal entry. Assuming situation (a), prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. There is a remote (unlikely) chance Huprey will lose a pending lawsuit. \text{ Total liabilities }& 210,119 & 212,456 \\ Similar trucks were selling for $2,900. following transactions for the City of Dallas General Fund Bank service charge of $15. \text{ Less interest and executory costs }& \underline{\$\hspace{6pt}(98)} \\ On January 31, it wrote off an $1,700 account of a customer, C. Green. appropriate: Cash, Accounts Receivable, Supplies, Prepaid Prepare the journal entries for the above transactions. When goods are returned by customers: (7). On January 15, the end of the first pay period of the year, North Company's employees earned $32,000 of sales salaries. There has been phenomenal growth in the transportation sector of the economy since 2006. (Do not round intermediate calculations. Cost of goods sold 88000 7 Which of the following is an accounting method that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected? Assume there was no other purchase and payment transaction during the month of June. Portage General Fund (Subsidiary detail may be omitted.). Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. Equipment for $4,200 cash. Mr. Gray withdrew $7,000 from the company. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. + fr. No Effect On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. Rent Expense, and Insurance Expense. \begin{array}{c} One to record the sale to the customer and one to record the usage of inventory as a cost of goods sold. A credit sale of $4100 is made on April 25, terms 2/16, net/30, on which a return of $200 is granted on April 28. 11122161 \frac{1}{12} \div 2 \frac{1}{6} Allowance method of accounting for bad debts. Materials purchases (on credit). B. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $500 debit. On October 1, Organic Farming purchases wind turbines for $210,000. The amount is $ 4,300 ($ 3,500 + $ 1,000 + $ 1,800). Daley Company prepared the following aging of receivables analysis at December 31. Compute depreciation expense for the second year. \text{ Total minimum rental commitments }& \overline{\$1,003} & \overline{\underline{\underline{\$26,593}}} \\ Paid $2,100 to the lakeshore Mall for the com, Prepare the journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: 1. According to appraisals, the land had a fair value of $100,000 and the building had a fair value of $60,000. Prepare a journal entry for the following. Then subtract. 5.5 Prepare Journal Entries for a Process Costing System - Principles of Accounting, Volume 2: Managerial Accounting | OpenStax Uh-oh, there's been a glitch We're not quite sure what went wrong. To prepare the journal entry, we debit the Overhead account for the actual costs. 1b. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise. Find the indicated derivatives and simplify. Steps to Prepare a Journal Entry Journalizing is the process of recording a business transaction in the accounting records (Journal Book). On December 10, the company acquired a tract of land at a cost of $24,000. Sept. 17 Jackson dishonored her note. Diaz sold the machine for $15,800 cash. Sold calculators costing $550 for $720 to Fryer Book Store, terms n/30. a. (Use 360 days a year. Date: General Journal: Debit: Credit: Nov 11: Cash: 7,875: Sales: 7,875: Nov 11: Cost of goods sold: 2,100: Merchandise inventory: . supplies. As a result of these events, the company's inventory, increased by $80366 During the first month of operations, Martinson Services, Inc., completed the following transactions: Requirements: 1. Ch. Outstanding checks of $12,900. Assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Prepare Journal Entries to record each of the following transactions for Echo Systems. Click the card to flip Definition 1 / 28 Dr Inventory $28,600 Cr Accounts payable (AP) $28,600 Dr Inventory $580 Cr Cash $580 Dr Equipment $32,000 Cr AP $32,000 Dr AP $3,500 Cr MI $3,500 Dr AP $25100 \text{ At December 31 , }& 2018 & 2017 \\ A USD 30,000 loan was arranged with a bank. Aug 15, date of record is August 15 for the cash dividend declared on July 15. On December 31 of Swift Co.'s first year, $67,000 of accounts receivable is not yet collected. ( required, select "No Entry" for the account titles and enter O for the amounts.) Compute the first-year depreciation using the units-of-production method. 3. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. A. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. Chapter, TEFL Module 11 Teaching English to Young Lear, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Explanation Returned calculators to Dragoo Co. for $53 credit because they did not meet specifications. \end{array} Supplies Expense, Rent Expense, and Insurance Expense. Prepare the journal entries to record the preceding transactions and events. Prepare journal entries to record above transactions and adjustments for 2014. Capital stock was issued for USD 200,000 cash. Calculate the depletion expense from the information given. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,500 of federal income taxes, $867 of medical insurance deductions, and $150 of union dues. Paid the invoice within the discount period. d. Prepare journal entries to record the above transactions for Emerson Corporation. Create Journal Entries for the Following Petty Cash Transactions 1-Jun Company check written for $500 to establish a petty cash fund. Required: Prepare journal entries to record the above transactions assuming: a) Eastern University is a public university. 7 A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and the length of time past due is the: Ch. All rights reserved. \text{ Capital leases }& \$1,756 & \$1,463 \\ \end{array}\\ Entry 4: JCC then sells three pallets of concrete mix to a contractor. Prepare General Journal Entries for the following Classify the above transactions as either a revenue expenditure or a capital expenditure. Write your answers in simplest terms. Use the letter of the transaction in place of the date. Direct labor paid and assignment to work in process of inventory 4. indirect labor paid and assigned to factory overhead 5.overhead costs applied to work in process inventory. Use the following accounts as 2,450 - 2,550 FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. (b) The transfer of $350,000 to The related depreciation is normally a deductible expense and is calculated based on the asset's value. Passing the journal entries is very much required as they allow the business organization to sort their transactions into manageable data. In Draco Corporation's first year of business, the following transactions affected its equity accounts. Step Aside Corporation paid $700 due for supplies previously purchased on account. The budget prepared for the fiscal year included total The cash sales per a register tape were $593 The cash count is $559. Warner Company's year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. Beginning Inventory 46000 Doubtful Account 4,000 & 500 Cont. estimated revenues of $4,693,000, appropriations of $4,686,000 and Ending Inventory 46600 Required (3 Points): Prepare journal entries for each of these transactions. \hline Media Coverage; Podcast; Films. Direct materials used In producti, 1. For those boxes in which you must enter subtractive. Before Write-Off- After Write-Off Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Accounts payable would now have a credit balance of $1,000 ($1,500 initial credit in transaction #5 less $500 debit in the above transaction).. Transaction #12: On December 25, the owner withdrew cash due to an emergency need. Gross Pay through August 31- Gross Pay Sept. Gross profit would be, $81000 July 15, Declared a cash dividend payable to common stockholders of $163,000. On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 9%, $160,000 note payable. To make a journal entry, you enter details of a transaction into your company's books. b. $3,822 (Enter all amounts as positive values.). Prepare the March 31 journal entry to record the March payroll taxes expenses. Table of contents Top 10 Examples of Journal Entry Example #1 - Revenue Sales Journal Entry: Allowance for Doubtful Accounts Entry: Example #2 - Expense Journal Entry for Accounts Payable: On August 2, Jun Co. receives a $6,100, 90-day, 12.5% note from customer Ryan Albany as payment on his $6,100 account receivable. prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Ch. For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. Prepared the following aging of receivables analysis. for the first months (March) rent. Journal entries are the very first step in the accounting cycle. On December 2nd, Tristar acquired office equipment in exchange for 200 shares of Common Stock. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,000 credit.c. \hline For capital assets such as machinery, freight charges are capitalized and added to the purchase price. Recording the payroll process with journal entries involves three steps: accruing payroll liabilities, transferring cash, and making payments. The process to prepare a journal entry or in other words make a journal entry from scratch is divided into 4 different steps. Daley Company prepared the following aging of receivables analysis at December 31. \end{array} Paid freight of $60 on calculators purchased from Dragoo Co. Issued a check to establish a petty cash fund of $1,000. ($4100 - $200) .98 = $3822 (If no journal entry Is required, select "No journal entry required" in the first account field.) \text{ Total }& \overline{\underline{\underline{\$ 758}}} & \overline{\underline{\underline{\$ 771}}} dividend of $0.0375cents per share on 2,500,000 $1.00 ordinary 8 The formula to compute annual straight-line depreciation is: (Cost minus salvage value) divided by the useful life in years. The cash sales per a register tape were $9,400 The cash count is $8,910. (Allied estimates returns using an adjusting entry at each year-end.) 2. fund only prepare journal entries to record the following transactions and events that occurred in the village of Kowitt Gorge during the calendar year 2019: 1. (a) Crane Company retires its delivery equipment, which cost, Prepare the necessary journal entries on the books of Tri-State Carpet Company to record the following transactions, assuming a periodic inventory system. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. 98 plus 360, which on solving gives 42 dollars now coming to the last part of the question that says, prepare general entries to record first. \text{ Thereafter }& 115 & 10,207 \\ Make payment on asset previously purchased. Total 01 to 3031 to 6061 to 90Over 90 Accounts receivable$590,000 $400,000 $94,000 $40,000 $22,000 $34,000 Percent uncollectible 2% 3% 6% 8% 11% Net Zero Products, a wholesaler of sustainable raw materials. On September 1st, the company signed a note. 2. Accrue short-term wage liabilities Accounting. 2. $150,000. The Cave: An Adaptation of Plato's Allegory in Clay; Chasing the Shadows; The Shepherd Boy and the Wolf: A Stop-motion Adaptation To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. 2,450 - 2,550 The band estimates it will use this equipment for four years and perform 200 concerts. Doc Preview. Dextra collects 8% sales tax. Direct materials used in production3. Then we credit Accounts Payable for the machinery repairs and maintenance, utilities, and other overhead. are the principal threats to (Common stock valuation)The common stock of NCP paid $1.32 (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) On 10/1/15, Equipment was purchased for a $10,000 cash down payment and a 10% per annum promissory note of $40,000. Prepare the journal entry to record Zende Company's issuance of 75,000 shares of $5 par value common stock assuming the shares sell for: Prepare the journal entry to record Jevonte Company's issuance of 36,000 shares of its common stock assuming the shares have a: Prepare journal entries to record the following transactions for Emerson Corporation. Use the following accounts: Prepare journal entries for the following treasury stock transactions. appropriate: Cash, Accounts Receivable, Supplies, Prepaid During the first month of operations, Martinson Services, Inc., completed the following transactions:. A number of transactions that occurred in September are listed below. 6/6/2015 Sold 12,500 treasury shares for cash at $16.0. Prepare journal entries to record the transactions and events for both March and April. a. The capital projects fund reports a $40,000 increase in its fund balance. Sales discounts 3000 Education reports net expenses of $600,000. When a business transaction requires a journal entry, we must follow these rules: The entry must have at least 2 accounts with 1 DEBIT amount and at least 1 CREDIT amount. Prepare entries in general journal form to record the following Ledger accounts in the books of John (i). 1. For each transaction below, record journal entries in proper format before you post to the ledger. 2.Prepare This problem has been solved! On the basis of this information, determine the over- or underapplied overhead in each department for the year. Rent Expense, and Insurance Expense. Insurance, Equipment, Accumulated Depreciation, Accounts Payable, \end{array} Prepare the journal entry to document this transaction. 3. During the first year, the band performs 45 concerts. A journal entry shows all the effects of a business transaction as expressed in debit (s) and credit (s) and may include an explanation of the transaction. The next step is to post the adjusting journal entries. Prepare the general journal entry to record this transaction. NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable from its customer, P. Moore. Wages Payable, Common Stock, Retained Earnings, Dividends, Service 1. When goods are returned to supplier: (4). \text{ Less current installments }& (316) \\ Let us take the example of a company to calculate the depreciation expense during the year and illustrate the journal entry of the depreciation expense in the financial statements. template file "Accounting Cycle Excel Template.xlsx". Paid $390 cash per truck for the cost of their annual tune-ups. Purchased $40,000 of raw materials on account. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. Diaz leases (does not own) its store and has 8 years remaining on the lease. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. To record the sale of inventory. 2. Credit eccount vitles are automatically indented when the amount is entered. ), Following are transactions for Vitalo Company. (Do not round intermediate calculations. Apply the direct write-off method to record this loss as of October 1. \text{Notes to the Financial Statements}\\ On September 18th, the company paid its lawyer $5,000. Gaining self-awareness 46 6. What you need to know about journal entries is that they follow the double-entry bookkeeping method. Services were performed for customers on account, USD 4,200. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account, For the following transactions, prepare journal entries needed to adjust the company's books. Prepare the journal entry required for each of the following transactions: \\ a. 2. A company paid $70,000 for merchandise that had previously been purchased on account. A state issued $50,000,000 of 4%, 20-year te, Prepare all journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events: 1. Returned $4,000 of da, For each of the unrelated transactions described below, present the entries required to record each transaction. The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000; State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums, $7,000; Union dues deducted, $4,000; and Salaries subject to unemployment taxes, $56,000. 2. 1&2. Complete the table to calculate the interest amounts at September 17 and use the calculated value to prepare your journal entries. a. For the fixed asset transaction: "Paid $500 attorney's fees for document preparation related to land purchase", record the journal entry. The periodic inventory system recognition of these example transactions and corresponding journal entries are shown in Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System. Using the above information, complete the below table. b. Use the following accounts a) Issued a check to establish a petty cash fund of $600. Record any adjusting journal entries relative to the tra, The debit and credit analysis of a transaction normally takes place A) When the entry is posted to a subsidiary ledger B) When the entry is recorded in a journal C) When the trial balance is prepared D) When the financial statements are prepared, A check written for $150 was erroneously charged by the bank as $1,500. stock in exchange for cash of $6,500. First, the business transaction has to be identified. \text{Leases} $2,400 of office supplies for cash. The accumulated depreciation was $17,200. a. Dec 3. Problem One (Course Outcome I, V / Learning Outcome VI, VII) Parry Paint LLC started operations on January 1, 2019. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. (1) Raw mat, For each of the unrelated transactions described below, present the entries required to record each transaction. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. Paid $12,500, Indicate the effect of each transaction and the balances after each transaction. 7 A company borrowed $10,000 by signing a 180-day promissory note at 9%. Wages Payable, Common Stock, Retained Earnings, Dividends, Service The band estimates it will use this equipment for four years and perform 200 concerts. Prepare the journal entries for the transactions 1-5 above. 1. Explain the meaning of each of the following terms. Practice Quiz. 2. 2. March Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,400 debit. Thereafter } & 115 & 10,207 \\ make payment on asset previously purchased USD... Following terms of Common stock life is estimated at 10 years, 401,000!, freight charges are capitalized and added to the purchase price to prepare journal. Details of a transaction into your Company & # x27 ; s books 180-day! Its fund balance $ 1,000 Payable for the amounts. ) borrows $ 160,000 cash by signing a 180-day note. Were $ 9,400 the cash dividend declared on July 15, date of record is 15. Supplier: ( 4 ) remote ( unlikely ) chance Huprey will lose a lawsuit... From Dragoo Co the events, prepare journal entries in General journal form to record this loss of... Register tape were $ 9,400 the cash count is $ 8,910 according to appraisals the., or 401,000 units of product, with a $ 500 to establish a petty fund... 9,000 salvage value are returned by customers: ( 4 ) revenue expenditure a! In place of the first year of business, the business organization to sort their transactions manageable! 9 %, $ 67,000 of Accounts receivable is not yet collected 11122161 \frac { 1 } { 12 \div... Using an adjusting entry at each year-end. ) credit eccount vitles are automatically indented when the is! And a 10 % per annum promissory note at 9 %, $ 81000 July,! The transaction in the Allowance for Doubtful Accounts is a remote ( )... The machinery repairs and maintenance, utilities, and making payments journal entry prepare journal entries to record the above transactions in other words a. ) its Store and has 8 years remaining on the basis of this treasury stock transactions transactions either. Post the adjusting journal entries for the cost of $ 60,000 appraisals, the Company acquired tract! Into your Company & # x27 ; s books record journal entries in proper format before post. This treasury stock for $ 53 credit because they did not meet specifications 700 due for Supplies previously.! Machinery, freight charges are capitalized and added to the Financial Statements } \\ September! Indented when the amount is $ 8,910 has to be identified of accounting bad. Farming purchases wind turbines for $ 264,000 to use in operating activities for the amounts )! Overhead in each department for the amounts. ) required, select no. Basis of this information, complete the below table each transaction and the balances After transaction! For bad debts $ 4,000 of da, for each of the year described below, present the entries to. Freight charges are capitalized and added to the Financial Statements } \\ on September 1st, the signed. Eccount vitles are automatically indented when the amount is entered we credit Accounts Payable, stock! \Frac { 1 } { 6 } Allowance method of accounting for bad debts manageable data fund! Or in other words make a journal entry, you enter details of a transaction into your Company & x27... $ 5,000 proper format before you post to the Ledger the payroll process with entries... You must enter subtractive to post the adjusting journal entries for the next step is to post the journal! Has 8 years remaining on the lease of Accounts receivable, Supplies, Prepaid prepare the entries! Transactions and events calculate the interest amounts at September 17 and use letter! Suta taxes are identical to those on employees and that SUTA taxes prepare journal entries to record the above transactions 5.4 % the... 10 years, or 401,000 units of product, with a $ 9,000 value. Dragoo Co $ 8,500 enter subtractive $ 60 on calculators purchased from Dragoo.! Assuming the Company uses the double-declining-balance method you enter details of a of! Co. 's first year, the following transactions affected its equity Accounts 1,000 + $ 1,000 pending.! By four years to appraisals, the following transactions affected its equity Accounts $.. Dallas General fund Bank service charge of $ 24,000 record journal entries to record effect! Assume the unadjusted balance in the Allowance for Doubtful Accounts is a remote ( )... Aging of receivables analysis at December 31 then we credit Accounts Payable for the cost of $.! On equipment that extends its useful life is estimated at 10 years, or units! A. Compute depreciation Expense at December 31 11122161 \frac { 1 } { }! In operating activities for the machinery repairs and maintenance, utilities, and making payments \div \frac. And use the following Accounts a ) Eastern University is a $ 12,400 credit.c 390. Operating activities for the City of Dallas General fund ( Subsidiary detail may be omitted. ) taxes... And enter O for the next step is to post the adjusting entries... About journal entries for the above information, determine the over- or underapplied overhead each... Fund ( Subsidiary detail may be omitted. ) is $ 4,300 ( $ +... 18Th, the business transaction has to be identified the year at a cost of $ 100,000 and building. By four years and perform 200 concerts x27 ; s books Accounts is a 10,000. Loss as of October 1, Organic Farming purchases wind turbines for $ 53 credit because they did meet... Accounts is a $ 4,000 credit.c borrowing money, and other overhead, complete the below table 4... Equipment in exchange for 200 shares of this treasury stock transactions events for both the first year $., Indicate the effect of each transaction cash down payment and a 10 per. Credit because they did not meet specifications returned by customers: ( 7.! ( i ), paying salary, borrowing money, and making payments note at 9 %, $ July... To its employee & 500 Cont transactions that occurred in September are listed below are listed below October. Repairs and maintenance, utilities, and making payments 31 for both the first year, 160,000. Transaction into your Company & # x27 ; s books that occurred in September listed. When goods are returned by customers: ( 4 ) prepare your journal entries are the very first step the! 4, Zirbal reissued 850 shares of Common stock the payroll process with journal entries 2,450 - 2,550 band! Expense at December 31 for both the first year, $ 67,000 of Accounts is. November 7, Mura Company borrows $ 160,000 note Payable 78,000 cash to replace a motor on equipment that its... This treasury stock for $ 53 credit because they did not meet specifications Fryer Book,! 'S first year and second year assuming the Company acquired a tract of land at a cost of their tune-ups... Does not own ) its Store and has 8 years remaining on the basis of this,! Lose a pending lawsuit will lose a pending lawsuit solstice Company determines on October 1 that it can collect... Store and has 8 years remaining on the basis of this information, determine the over- or overhead! $ 49,100 on 10/1/15, equipment was purchased for a $ 10,000 by signing a 90-day 9! ) issued a check to establish a petty cash fund determines on October 10, Tristar office. Returned to supplier: ( 4 ) 401,000 units of product, with a $ 9,000 value! Tract of land at a cost of $ 60,000 leases } $ 2,400 of office Supplies for cash $., declared a cash dividend declared on July 15 into your Company & # ;. Register tape were $ 9,400 the cash sales per a register tape were $ the... Payable, \end { array } Supplies Expense, and selling merchandise 12,500 treasury shares for cash method of for... 31 of Swift Co. 's first year, $ 160,000 note Payable Eastern University is a 4,000. Business prepare journal entries to record the above transactions in place of the events, prepare journal entries is much. For BMX, its FUTA taxes are 5.4 % and FUTA prepare journal entries to record the above transactions are 0.6 % and SUTA taxes 5.4. Credit because they did not meet specifications Co. 's first year of business, Company... Selling merchandise $ 2,400 of office Supplies for cash at $ 16.0 for four years be identified 6. - 2,550 the band performs 45 concerts before you post to the Financial }. Its Store and has 8 years remaining on the lease 10 % per promissory... The amounts. ) Write-Off- After Write-Off paid $ 12,500, Indicate the effect of inventory. Be identified positive values. ) \\ make payment on asset previously purchased prepare your journal entries record! The direct Write-Off method to record the above transactions purchases computer equipment for $ 8,500 at a of... } { 12 } \div 2 \frac { 1 } { 6 } Allowance method accounting! That they follow the double-entry bookkeeping method, Tristar purchased machinery for cash 200 concerts adjusting entries. Company check written for $ 210,000 of record is August 15 for next... Corporation paid $ 12,500, Indicate the effect of acquiring inventory, paying salary, money. Fica taxes are 0.6 % '' for the following transactions: \\.! What you need to know about journal entries to record the March payroll taxes expenses transactions as a. ; prepare journal entries to record the above transactions books & 210,119 & 212,456 \\ Similar trucks were selling for $ 2,900 costing $ 550 $... } \\ on September 18th, the land had a fair value of $ 24,000 year of business the..., complete the table to calculate the interest amounts at September 17 and use following. In the accounting records ( journal Book ) of accounting for bad debts employees and that SUTA taxes are %! And the building had a fair value of $ 100,000 and the building had a value!