At the end of 2020, the new accountant discovered that in January 2019, the company accrued sales wages of $58,000 in excess of the correct amount. On February 1, 2021, the CEO of the company decided to resign. On February, 10, 2021, there was a fire at the building at 401 Main Street. The building and it's contents were destroyed. Aylmer is fully covered by insurance and the fire was determined to be accidental.

Trial balance Dec 31, 2019 wages payable : 108,900

Trial balance unadjusted Dec 31, 2020: 99,500

Based on the above information, record the required journal entry(ies). Include tax implications as necessary (tax rate 30%)

Answer rating: 100% (QA)

To record the required journal entryies based on the given information we need to address the overaccrued sales wages the CEOs resignation and the fir... View the full answer