Knockoff Corporation sells a videogame unit known as the Gii. During the month of December. The following
Question:
Knockoff Corporation sells a videogame unit known as the Gii. During the month of December. The following events occur.
Prepare necessary journal entries and adjusting entries that Knockoff should record:
1) Knockoff purchased $300,000.00 of inventory on account?
2) The company incurs salary expenses of $45,000.00, although employes will not be paid until the beginning of January. The company also owes an additional $7,000.00 to the government for payroll taxes?
3) Knockoff determines that it owes the IRS $120,000.00 in income taxes for this year?
4) A retail customer places an advance order for Giis and pays knockoff $23,000.00. The Giis will be shipped in January?
5) Knockoff owes a local bank $4,000.00 in interest on a loan?
6) Knockoff rents a warehouse of $3,000.00 per week. No payment were made for the last three weeks of the year?
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby