Piltdown Carpet had the following items that require adjusting entries at the end of the year. 

1. Piltdown pays payroll of $31,700 every other Friday for a two-week period. This year December 31 falls on the Tuesday before payday.

2. Piltdown purchased $100,000 of tile on March 1 with a note payable requiring 12 percent interest. The interest and principal on this note are due within one year. As of December 31, Piltdown had not made any principal or interest payments. 

3. Piltdown's earned income is $500,000 for the year for tax purposes. Its effective tax rate is 25 percent. These taxes must be paid by April 15 of next year.

 

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Prepare the adjusting journal entries to record these transactions at the end of the current year. 1. (Record accrued wages) 2. (Record acorued interest) 3. (Record accrued income taxes) Prepare the adjusting journal entries to record these transactions at the end of the current year. 1. (Record accrued wages) 2. (Record acorued interest) 3. (Record accrued income taxes)

Answer rating: 100% (QA)

1 Wages expense 31700 31700710 Wages payable 22190 ... View the full answer