A) In January, gross earnings in Lily Company totaled $78,000 All earnings are subject to 7 65 FICA taxes, 5 40 state unemployment taxes, and 0 80 federal unemployment taxes Prepare the entry to record January payroll tax expense (Credit account titles are automatically indented when amount is entered Do not indent manually Round answers to 0 decimal places, e g 5,275 ) Date Account Titles and Explanation Debit Credit B) C S Lily Company had the following transactions involving notes payable July 1, 2020 Borrows $54,500 from First National Bank by signing a 9 month, 8 note Nov 1, 2020 Borrows $63,000 from Lyon County State Bank by signing a 3 month, 6 note Dec 31, 2020 Prepares adjusting entries Feb 1, 2021 Pays principal and interest to Lyon County State Bank Apr 1, 2021 Pays principal and interest to First National Bank Prepare journal entries for each of the transactions (Credit account titles are automatically indented when amount is entered Do not indent manually Round answers to 0 decimal places, e g 5,275 Record journal entries in the order presented in the problem )

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Posted on Sep 16, 2024

A) In January, gross earnings in Lily Company totaled $78,000. All earnings are subject to 7.65% FICA taxes, 5.40% state unemployment taxes, and 0.80% federal

A) In January, gross earnings in Lily Company totaled $78,000. All earnings are subject to 7.65% FICA taxes, 5.40% state unemployment taxes, and 0.80% federal unemployment taxes. Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

B) C.S. Lily Company had the following transactions involving notes payable.

July 1, 2020		Borrows $54,500 from First National Bank by signing a 9-month, 8% note.
Nov. 1, 2020		Borrows $63,000 from Lyon County State Bank by signing a 3-month, 6% note.
Dec. 31, 2020		Prepares adjusting entries.
Feb. 1, 2021		Pays principal and interest to Lyon County State Bank.
Apr. 1, 2021		Pays principal and interest to First National Bank.

Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)