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, $1,300.00.
Instructions:
1. 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.
2. Journalize the appropriate reversing entries on January 1 of the next year. Use page 1 of a general journal.

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Payroll and Employee Payroll Taxes Employer Payroll Taxes Salaries-Administrative $600.00 Social Security Tax $71.50 Salaries-Sales 500.00 Medicare Tax 16.50 Federal Income Tax Withheld 240.00 Federal Unemployment Tax 8.80 Social Security Tax Withheld 71.50 State Unemployment Tax 59.40 Medicare Tax Withheld 16.50