assets $(100199)$

$111$ Cash $112$ Petty Cash Fund $113$ Accounts Receivable $114$ Merchandise Inventory $116$ Supplies

$118$ Prepaid Insurance $122$ Equipment $123$ Accumulated Depreciation,

Equipment

abilities $(200231)$

CHAPtER $12$: FinAnCiAl STATeMenTS, CloSing enTRieS, AnD ReveRSing enTRieS $567$ Cost of Goods Sold $(500599)$

$221$ Accounts Payable $226$ Employees$$ Income Tax Payable $227$ FICA Social Security Tax Payable $228$ FICA Medicare Tax Payable $229$ State Unemployment Tax Payable $230$ Federal Unemployment Tax Payable $231$ Salaries Payable

owner$$s Equity $(300399)$

$311$ M$.$ L$.$ Langdon, Capital $312$ M$.$ L$.$ Langdon, Drawing $313$ Income Summary

Revenue $(400499)$

$411$ Sales $412$ Sales Returns and Allowances

JOuRNALS

Sales Journal, page $65$ Purchases Journal, page $65$ Cash Receipts Journal, page $66$ Cash Payments Journal, page $67$ General Journal, pages $6871$

$511$ Purchases $512$ Purchases Returns and Allowances $513$ Purchases Discounts $514$ Freight In

Expenses $(600699)$

$611$ Salaries Expense $612$ Payroll Tax Expense $613$ Rent Expense $614$ Utilities Expense $616$ Supplies Expense $617$ Insurance Expense $618$ Depreciation Expense, Equipment $619$ Miscellaneous Expense

$*$If using Working Papers, reference the journal page numbers listed above.

ACCOuNtS RECEIVABLE

Fashion Decor Hotel Beritz Jason and Waldon

b$.567$

$912$

$1212$

$12$

$1214$

$1414$

$18$

$1819$

$1922$

$22242426$

Received an electric bill and paid Countywide Power, Ck$.$ No$.7217,$ $$358.$ Received check from Jason and Waldon, $$10,780\mathrm{.}51,$ in payment of account. Issued Ck$.$ No$.7218,$ $$9,684\mathrm{.}18,$ to Magnuson Textiles, in payment of its invoice no$.$ RE$64$ for $$9,782$ less $1$ percent discount.

Cash sales for February $1$ through February $9,$ $$9,745\mathrm{.}40.$ Recorded the payroll in the payroll register for regular biweekly salaries for period ended February $12.$ Salaries: R$.$ W$.$ Harris, $$2,840$; T$.$ L$.$ Newkirk, $$2,374.$ Income tax withholdings are $$287$ for Harris and $$216$ for Newkirk. Assume the following tax rates and taxable earnings limits $($see the payroll register for beginning cumulative earnings in your Working Papers. This information is also provided in CengageNow, or CLGL$.)$: $$ SocialSecuritytaxableearnings,$$118,500,$witharateof$6\mathrm{.}2$percentfor

employees and $6\mathrm{.}2$ percent for employers. $$ Medicaretaxableearnings,allearnings,witharateof$1\mathrm{.}45$percent

$($for both employees and employers$).$ Recorded the payroll entry, crediting Salaries Payable. Issued Ck$.$ No$.7219,$ $$2,335\mathrm{.}74,$ to R$.$ W$.$ Harris. Issued Ck$.$ No$.7220,$ $$1,976\mathrm{.}39,$ to T$.$ L$.$ Newkirk. Recorded payroll taxes. Assume the following tax rates and taxable earnings: $$ Federalunemploymenttaxableearnings,$$7,000,$witharateof$0\mathrm{.}6$percent. $$ Stateunemploymenttaxableearnings,$$7,000,$witharateof$5\mathrm{.}4$percent. Received a credit memo from Magnuson Textiles for defective merchandise, $$692,$ credit memo no$.916.$ Issued Ck$.$ No$.7221,$ $$2,900\mathrm{.}80,$ to Mid$-$State Bank for monthly deposit of January employees$$ federal income tax withheld, $$1,285,$ FICA Social Security tax, $$1,309\mathrm{.}54$ and FICA Medicare tax, $$306\mathrm{.}26.$ Sold merchandise on account to Jason and Waldon, $$15,781\mathrm{.}30,$ invoice no$.5222.$ Issued Ck$.$ No$.7222,$ $$4,298\mathrm{.}97,$ to Magnuson Textiles, in payment of its invoice no$.$ RE$275$ less the credit memo for defective merchandise and less the discount. Bought merchandise on account from Brandon, Inc., $$21,375\mathrm{.}20,$ invoice no$.164$M$,$ dated February $14$; terms $2/1$