This company was incorporated on Dec 15th, 2021 with a $10,000 investment from its owner. Inventory...

  

Transcribed Image Text:

This company was incorporated on Dec 15th, 2021 with a $10,000 investment from its owner. Inventory was purchased at the end of December and opened for business on January 1st, 2022. Below is the trial balance of the company on December 31st, 2021 Account Cash Inventory Accounts Payable Common Stock Elk River Company Trial Balance 31-Dec-21 Debit 8,000 10,228 18,228 Credit 8,228 10,000 18,228 I A) Journalize the following transactions (This company does monthly financial statements) B) What is the balance of the Accounts Payable Account C) What is the total liability of taxes due to government taxing agencies. (Both federal and state) (1) The company borrowed $54763 on January 1, 2022 at an interest rate of 3.45% APR. The note has quarterly, first interest payment due on March 30th 2022, interest payments and is due in full on December 31, 2022. 2) The company receives an advanced payment of $4119 from a customer for inventory to be shipped in the next month. 3) The company paid $4525.4 against the accounts payable from the December inventory purchases. 4) The company purchases an additional $45221 of inventory. Paying $10,000 in cash and the remainder on credit. 5) The company purchased an optical sorting machine to increase the efficiency of the sorting of inventory. The machine cost, and was paid for in cash, $10205 and was placed in operation in January 15th. 6) During the month the company generated $75179 of sales. All sales on credit. The cost of goods sold totaled $32402 I 7) On January 31st the company accrued payroll that will be paid on the first Monday in February. The gross payroll was $20057 Make the following assumptions: Social Security Medicare 8) Sales tax in the state is 1.5% 6.20% 1.45% None of the employees reached the cap on any of the taxes. Don't forget the journal for the employer portion of taxes. CHECK FIGURE Total Current Liabilities Federal Income Tax State Income Tax 9) The company estimates that 1% of sales will be returned defective within the next 6 months. $ 122,637.30 5% 2% FUTA SUTA 0.60% 5.40% This company was incorporated on Dec 15th, 2021 with a $10,000 investment from its owner. Inventory was purchased at the end of December and opened for business on January 1st, 2022. Below is the trial balance of the company on December 31st, 2021 Account Cash Inventory Accounts Payable Common Stock Elk River Company Trial Balance 31-Dec-21 Debit 8,000 10,228 18,228 Credit 8,228 10,000 18,228 I A) Journalize the following transactions (This company does monthly financial statements) B) What is the balance of the Accounts Payable Account C) What is the total liability of taxes due to government taxing agencies. (Both federal and state) (1) The company borrowed $54763 on January 1, 2022 at an interest rate of 3.45% APR. The note has quarterly, first interest payment due on March 30th 2022, interest payments and is due in full on December 31, 2022. 2) The company receives an advanced payment of $4119 from a customer for inventory to be shipped in the next month. 3) The company paid $4525.4 against the accounts payable from the December inventory purchases. 4) The company purchases an additional $45221 of inventory. Paying $10,000 in cash and the remainder on credit. 5) The company purchased an optical sorting machine to increase the efficiency of the sorting of inventory. The machine cost, and was paid for in cash, $10205 and was placed in operation in January 15th. 6) During the month the company generated $75179 of sales. All sales on credit. The cost of goods sold totaled $32402 I 7) On January 31st the company accrued payroll that will be paid on the first Monday in February. The gross payroll was $20057 Make the following assumptions: Social Security Medicare 8) Sales tax in the state is 1.5% 6.20% 1.45% None of the employees reached the cap on any of the taxes. Don't forget the journal for the employer portion of taxes. CHECK FIGURE Total Current Liabilities Federal Income Tax State Income Tax 9) The company estimates that 1% of sales will be returned defective within the next 6 months. $ 122,637.30 5% 2% FUTA SUTA 0.60% 5.40%

Answer rating: 100% (QA)

AJOURNAL ENTRIES RECORDED Explanation Step 23 Date 20220101 Date Step 33 20220330 Date Date Date Dat... View the full answer