2.

For the payroll period ended on June 25, 2013, gross pay was $14,900, net pay was $10,200, FICA tax withholdings were $1,700, income tax withholdings were $2,400, and medical insurance contributions were $600.

Required:

Use the horizontal model to show the effects of the payroll accrual on June 25, 2013.(Enter decreases to account balances with a minus sign.)

Balance Sheet:

Assets$___________ = Liabilities $_____________ + Stockholders Equity $_______________

Income Statement:

Net Income: $____________ = Revenue $____________ - Expenses: $_________________