Additional Information for Baraf Saaf Company Snow Removal Services

a$.$ On $\frac{02}{29},$ the Office Supplies balance was $$900.$

b$.$ On $\frac{02}{29},$ Baraf Saaf completed all snow removal services for the month of Feb. in regards to the new customer. The

advance payment received on Feb. $1$ was for two months, equal amount for each month. $($Hint: See transaction#$3)$

c$.$ On $\frac{02}{29},$ record Monthly depreciation expense on equipment. Salvage value is $$1000$ with a use$-$full life of $4$ years.

Please round the monthly depreciation to the nearest whole dollar. $($Remember those rounding rules!$)$

d$.$ On $\frac{02}{29},$ accrued salary expense was $$2,400$ for the period of $\frac{02}{22}-\frac{02}{29}(1$ week's salary$).$ Salary will not be paid

until $03/15.$

Please complete the $($d$1)$ Employee $($deductions$)$ and $($d$2)$ Employer's Payroll Tax Journal Entries. FICA tax is $7\mathrm{.}65\%$

Federal Tax Rate of $20\%.$

Hint:

Refer Chapter $10,$ DO IT$!$ Ib Wages and Payroll Taxes example

Add Payroll Taxes Payable and Payroll Expense T$-$accounts to General Ledger and add them on Trial Balance as

well

e$.$ Completed many snow removal jobs on $\frac{2}{29}\frac{?}{2024},$ which was not recorded, the payment of $$10,000$ will be received in

March.

f$.$ On $\frac{2}{29},$ received $5\%$ of the outstanding balance of AR$.$ Be sure to include all AR transactions through $02/29/2024.$

g$.$ Baraf Saaf Snow Removal Services uses the Percent of Sales Method when estimating uncollectible account expense.

Based on industry statistics, $9\%$ is estimated to be uncollectible.

Hints:

Use total of AR for the month $9\%.$

Add Allowance for Doubtful Account T$-$account next to AR and add it on

Balance as well

Add Bad Debt Expense T$-$account and add it on Trial Balance as well

h$.$ Record the interest accrued on $$60,000$ notes payable and $$30,000$ notes payable

the month of February. The interest

rate is $10\%.$

There are a total of $10$ adjusting journal entries. Please remember, all prepaid accounts and

need to be adjusted. Round all figures to the nearest whole dollar.

Hints on Adjusting Journal Entries.