Prepare journal entries 

20	1/31/2019	Inventory remaining on hand at 1/31/2019 had a cost of $21,000 and sales value of $42,000.
21	1/31/2019	NewCo's payroll for the period 1/21/2019 to 1/31/2019 is due, with salaries and wages of $12,000 and employer taxes of $1,200.
22	1/31/2019	Adjust prepaid insurance, with prepaid insurance at 1/31/2019 of $2,500.
23	1/31/2019	Record straight line depreciation on the new truck and equipment purchased during the month. The truck has an estimated useful life of 5 years with a 20% estimated salvage value, the office equipment has an estimated useful life of 8 years, with no estimated salvage value. Truck is 20,00 and Office equip 5000
24	1/31/2019	Reclassify the current portion of long-term debt: Wells Fargo Line of Credit  $20,000 + Wells Fargo truck loan due in 1 year (12 x $500) $6,000.
25	1/31/2019	Accrue interest due on the Wells Fargo line of credit at Jan 31. LINE OF CREDIT IS 2000  The annual interest rate for the loan is 5%, interest payments are due monthly beginning 3/1/2019 with principal payments of $500.
26	1/31/2019	The company estimates 5% of its' outstanding Trade Accounts Receivable are not collectible as of 1/31/2019. 49750 is total AR
27	1/31/2019	The company expects its federal and state income tax rates to be 25% and 9% respectively. Accrue the estimated income taxes payable on net income.
20	1/31/2019	Inventory remaining on hand at 1/31/2019 had a cost of $21,000 and sales value of $42,000.
21	1/31/2019	NewCo's payroll for the period 1/21/2019 to 1/31/2019 is due, with salaries and wages of $12,000 and employer taxes of $1,200.
22	1/31/2019	Adjust prepaid insurance, with prepaid insurance at 1/31/2019 of $2,500.
23	1/31/2019	Record straight line depreciation on the new truck and equipment purchased during the month. The truck has an estimated useful life of 5 years with a 20% estimated salvage value, the office equipment has an estimated useful life of 8 years, with no estimated salvage value.
24	1/31/2019	Reclassify the current portion of long-term debt: Wells Fargo Line of Credit  $20,000 + Wells Fargo truck loan due in 1 year (12 x $500) $6,000.
25	1/31/2019	Accrue interest due on the Wells Fargo line of credit at Jan 31.
26	1/31/2019	The company estimates 5% of its' outstanding Trade Accounts Receivable are not collectible as of 1/31/2019.
27	1/31/2019	The company expects its federal and state income tax rates to be 25% and 9% respectively. Accrue the estimated income taxes payable on net income.

Answer rating: 100% (QA)

Journal Entries Inventory writedown Debit Cost of Goods Sold 21000 Credit Inventory 21000 Payroll De... View the full answer