$13,750 Cash MORGAN COMPANY Balance Sheet December 31, 2019 $31,000 Accounts Payable 30,750 Interest Payable 7,380 Notes Payable 37,800 Owner's Capital 278 55,500 Inventory Prepaid Insurance Equipment 37.402 $106,930 $106,930 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 2. 3. 4. Morgan paid $278 interest on the note payable on January 1, 2020. The note is due December 31, 2021. Morgan purchased $240,000 of inventory on account. Morgan sold for $487,000 cash, inventory which cost $260,000. Morgan also collected $31.655 in sales taxes. Morgan paid $227,000 in accounts payable. Morgan paid $15,000 in sales taxes to the state. Paid other operating expenses of $19,000. On January 31, 2020, the payroll for the month consists of salaries and wages of 558,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8.900 federal income taxes are withheld. The salaries and wages are paid on February 1 5. 6. Adjustment data: 8. Interest expense of $278 has been incurred on the notes payable. 9. The insurance for the year 2020 was prepaid on December 31, 2019. 10. The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $3.060 salvage value. 11. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax and an oso% federal unemployment tax. 1035 PM 3/14/2021 Links LILY COMPANY Trial Balance January 31, 2020 Debit Credit X Cash 518655 $ $ X Inventory 26000 Accounts Payable 240750 Jull Interest Payable 278 Notes Payable 55500 X Prepaid Insurance 7995 Salaries and Wages Expense 58000 Owner's Capital 37402 > interest Expense 278 E Sales Revenue 487000 Equipment 37800 Waycandt, Accounting Principles, 13e stem Announcements Cost of Goods Sold 260000 Sales Taxes Payable 31655 Depreciation Expense 579 Accumulated Depreciation Equipment 579 Other Operating Expenses 19000 Payroll Tax Expense 8033 Salaries and Wages Payable 44663 FICA Taxes Payable 4437 State Unemployment Taxes Payable 3132 Federal Income Taxes Payable 8900 Federal Unemployment Taxes Payable 464 Total LILY COMPANY Balance Sheet January 31, 2020 Assets Current Assets Cash 288377 $1 Inventory 10750 37800 Equipment 336927 Total Currentes X Current Liabilities Accounts Payable Owner's Equity Liabilities and Owner's Equity Current Liabilities Accounts Payable 26750 Interest Payable 278 FICA Taxes Payable Sales Taxes Payable 31655 Salaries and Wages Payable 58000 Federal Income Taxes Payable 55500 Federal Unemployment Taxes Payable State Income Taxes Payable Total Current abilities Property, plant and Equipment State Income Taxes Payable X Total Current Liabilities Property, Plant and Equipment DO II Click if you would like to Show Work for this question: Open Show Work $13,750 Cash MORGAN COMPANY Balance Sheet December 31, 2019 $31,000 Accounts Payable 30,750 Interest Payable 7,380 Notes Payable 37,800 Owner's Capital 278 55,500 Inventory Prepaid Insurance Equipment 37.402 $106,930 $106,930 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 2. 3. 4. Morgan paid $278 interest on the note payable on January 1, 2020. The note is due December 31, 2021. Morgan purchased $240,000 of inventory on account. Morgan sold for $487,000 cash, inventory which cost $260,000. Morgan also collected $31.655 in sales taxes. Morgan paid $227,000 in accounts payable. Morgan paid $15,000 in sales taxes to the state. Paid other operating expenses of $19,000. On January 31, 2020, the payroll for the month consists of salaries and wages of 558,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8.900 federal income taxes are withheld. The salaries and wages are paid on February 1 5. 6. Adjustment data: 8. Interest expense of $278 has been incurred on the notes payable. 9. The insurance for the year 2020 was prepaid on December 31, 2019. 10. The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $3.060 salvage value. 11. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax and an oso% federal unemployment tax. 1035 PM 3/14/2021 Links LILY COMPANY Trial Balance January 31, 2020 Debit Credit X Cash 518655 $ $ X Inventory 26000 Accounts Payable 240750 Jull Interest Payable 278 Notes Payable 55500 X Prepaid Insurance 7995 Salaries and Wages Expense 58000 Owner's Capital 37402 > interest Expense 278 E Sales Revenue 487000 Equipment 37800 Waycandt, Accounting Principles, 13e stem Announcements Cost of Goods Sold 260000 Sales Taxes Payable 31655 Depreciation Expense 579 Accumulated Depreciation Equipment 579 Other Operating Expenses 19000 Payroll Tax Expense 8033 Salaries and Wages Payable 44663 FICA Taxes Payable 4437 State Unemployment Taxes Payable 3132 Federal Income Taxes Payable 8900 Federal Unemployment Taxes Payable 464 Total LILY COMPANY Balance Sheet January 31, 2020 Assets Current Assets Cash 288377 $1 Inventory 10750 37800 Equipment 336927 Total Currentes X Current Liabilities Accounts Payable Owner's Equity Liabilities and Owner's Equity Current Liabilities Accounts Payable 26750 Interest Payable 278 FICA Taxes Payable Sales Taxes Payable 31655 Salaries and Wages Payable 58000 Federal Income Taxes Payable 55500 Federal Unemployment Taxes Payable State Income Taxes Payable Total Current abilities Property, plant and Equipment State Income Taxes Payable X Total Current Liabilities Property, Plant and Equipment DO II Click if you would like to Show Work for this question: Open Show Work