$9-3$ APPLICATION PROBLEM

Journalizing adjusting and reversing entries for accrued expenses

Auxbury, Inc., has gathered the following information relating to accrued interest, accrued payroll, accrued

employer payroll taxes, and accrued federal income tax on December $31$ of the current year.

a$.$ One note payable is outstanding on December $31$: $180-$day, $12\%$ note with First National Bank, $$15,000,$

dated October $22.$

b$.$ Payroll information from the December $31$ payroll is as follows:

c$.$ Estimated federal income tax quarterly payment, $$1,300\mathrm{.}00.$

Instructions:

Journalize the adjusting entries for accrued interest, accrued payroll, accrued employer payroll taxes, and

accrued federal income tax on December $31$ of the current year. Use page $13$ of a general journal.

Journalize the appropriate reversing entries on January $1$ of the next year. Use page $1$ of a general journal$\mathrm{.}9-3$ APPLICATION PROBLEM

Journalizing adjusting and reversing entries for accrued expenses

Auxbury, Inc., has gathered the following information relating to accrued interest, accrued payroll, accrued

employer payroll taxes, and accrued federal income tax on December $31$ of the current year.

a$.$ One note payable is outstanding on December $31$: $180-$day, $12\%$ note with First National Bank, $$15,000,$

dated October $22.$

b$.$ Payroll information from the December $31$ payroll is as follows:

c$.$ Estimated federal income tax quarterly payment, $$1,300\mathrm{.}00.$

Instructions:

Journalize the adjusting entries for accrued interest, accrued payroll, accrued employer payroll taxes, and

accrued federal income tax on December $31$ of the current year. Use page $13$ of a general journal.

Journalize the appropriate reversing entries on January $1$ of the next year. Use page $1$ of a general journal.