The company had total sales on account (includes credit card sales) of $165,429.71. FTS takes all cash
Question:
The company had total sales on account (includes credit card sales) of $165,429.71.
FTS takes all cash and checks received from customers to the bank on Saturday morning. All deposits are for food sales except for $2,370 for catering provided in January 2021 and $840 for catering to be provided in February 2021 during the last week (1/26/2021 deposit.) The weekly “deposit slips” shows the amount of cash sales. Record the cash sales in four separate journal entries in one for each weekly deposit slip.
The company does not track inventory movement during the month or record the use of inventory as each sale occurs. You will record the change in inventory and cost of goods sold when you make the entry to adjust the balance in the inventory account to equal the value of inventory on hand on January 31.
Customers use credit cards to pay FTS. FTS then submits a request for payment to the credit card bank. The credit card banks make automatic payments to the company’s bank account.
The “Credit Card Receipts Report” gives the amount of payments FTS received from the credit card banks (customers on account).
Record the total cash the company received from customers on account in one entry.
The company uses two different accounts to record amounts paid to employees: 1) wage expense for workers and 2) salary expense for management.
You will record two separate journal entries.
- Wages and salaries paid to employees during January.
- Wages and salaries earned in January that will be paid in February.
Accrued compensation (similar to salaries payable) is the account Fuzzy uses to record amounts owed to employees and for income tax withholdings. Employee withholdings for taxes are held by FTS and paid at the end of each quarter (March 2021). FTS owes the government for withholding amounts and records a liability in the account “accrued compensation” until the amounts are paid. Cash paid to employees does not include the amounts withheld for income tax.
Expert Answer:
To record the companys cash sales and other transactions we need to create journal entries based on the information provided Lets process the informat... View the full answer
