Charger Inc. had the following items that require adjusting entries at the end of the year. a.

Fantastic news! We've Found the answer you've been seeking!

Question:

Charger Inc. had the following items that require adjusting entries at the end of the year.

a. Charger pays Its employees $5,000 every Friday for a five-day work week. This year December 31 falls on a Wednesday.

b. Charger earned income of $800,000 for the year for tax purposes. Its effective tax rate is 35%. These taxes must be paid by February 28 of next year.

c. Charger borrowed $280,000 with a note payable dated August 1. This note specifies 6%. The Interest and principal are due on March 31 of the following year.

d. Chargers president earns a bonus equal to 10% of income In excess of $650,000. Income for the year was $800,000. This bonus Is paid in May of the following year and any expense is charged to wages expense. (Assume the bonus paid is based on his/her pre-tax Income.)

Required:

Prepare the adjusting journal entries to record these transactions at the end of the current year.