1. Accrued Liabilities Thornwood Tile had the following items that require adjusting entries at the end of the year. Thornwood pays payroll of $31,500 every other Friday for a two-week period. This year December 31 falls on the Tuesday before payday. (Note: The work week is Monday through Friday.) Thornwood purchased $100,000 of tile on March 1 with a note payable requiring 12% interest. The interest and principal on this note are due within one year. As of December 31, Thornwood had not made any principal or interest payments. Thornwood's earned income is $500,000 for the year for tax purposes. Its effective tax rate is 25%. These taxes must be paid by April 15 of next year. Required: Hide Prepare the adjusting journal entries to record these transactions at the end of the current year. Journal enteries.

a. (Record accrued wages)

b. (Record accrued interest)

c. (Record accrued income taxes)

2.Sales Tax

Farrah's Furniture sold 35 couches to Angel's Inc. for $850 each plus an additional state sales tax of 7%. Angel's Inc. purchased on credit

Provide the journal entry to record the sale (round to nearest penny). If an amount box does not require an entry, leave it blank.

3. Accrued Wages

Natalie's Bakery pays its 20 hourly employees every Friday. Each of Natalie's employees earns a wage of $10 per hour and works 35 hours per week, spread evenly from Monday through Sunday. During the current year December 31 falls on a Tuesday.

Given this information, determine the adjusting journal entry that Natalie's Bakery must make on December 31.

4.Accrued Interest

On May 1, the Garnett Corporation wanted to purchase a $610,000 piece of equipment, but Garnett was only able to furnish $134,200 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $610,000 from the People's National Bank on a 3-year, 10% note.

If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?

Dec. 31
	(Record accrued wages expenses)
5.Payroll Taxes During October, Seger Insurance employees earned $100,000 in wages. Social Security applied to $86,000 of these wages (assume employees pay 6.2% of Social Security), while Medicare applies to all $100,000. State and federal unemployment taxes of $1,300 and $650 are owed, respectively. Prepare the necessary journal entry for Seger to record the employer portion of these payroll taxes. If an amount box does not require an entry, leave it either blank.