Accrued Liabilities Instructions Chart of Accounts General Journal Instructions Charger Inc. had the following items that require adjusting entries at the end of the year. a. Charger pays its employees $4,000 every Friday for a five-day work week. This year December 31 falls on a Wednesday. b. Charger earned income of $790,000 for the year for tax purposes. Its effective tax rate is 35%. These taxes must be paid by February 28 of next year. c. Charger borrowed $240,000 with a note payable dated August 1. This note specifies 6%. The interest and principal are due on March 31 of the following year. d. Charger's president earns a bonus equal to 10% of income in excess of $620,000. Income for the year was $790,000. This bonus is paid in May of the following year and any expense is charged to wages expense. (Assume the bonus paid is based on the company s income before bonus and income taxes.) Required: Prepare the adjusting entries to record these transactions at the end of the current year. General Journal Prepare the adjusting entries to record these transactions at the end of the current year on December 31. General Journal Instructions DATE 1 2 3 4 5 6 7 GENERAL JOURNAL ACCOUNT Adjusting Entries IMPACT ON FINANCIAL STATEMENTS PAGE 1 BALANCE SHEET INCOME STATEMENT POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME