At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the...

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At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. a-2. Record the journal entry to show the effect of the accrual that should have been made as of September 30, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the accrual of payroll taxes for the year. Note: Enter debits before credits. Date September 30, 2022 General Journal Debit Credit Record entry Clear entry View general journal At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. Required: a-1. Use the horizontal model to show the effect of the accrual that should have been made as of September 30, 2022. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Balance Sheet Income Statement Liabilities Stockholders' Equity Net Income Revenues Expenses Payroll taxes payable 4,700+ Payroll tax expense At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. c. Assume that when the payroll taxes were paid in October 2022, the payroll tax expense account was charged. Assume that at September 30, 2023, the accountant again neglected to accrue the payroll tax liability, which was $5,000 at that date. Determine the income statement and balance sheet effects of not accruing payroll taxes at September 30, 2023. Effect on net income for year ended September 30, 2023: Net effect is that expenses this year are Answer is complete but not entirely correct. $ 5,000 too low and net income this year is $ 4,700 too high $ 4,700 overstated and the retained earnings account is $ 4,700 overstated Effect on the September 30, 2023 balance sheet: Current liabilities are At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. a-2. Record the journal entry to show the effect of the accrual that should have been made as of September 30, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the accrual of payroll taxes for the year. Note: Enter debits before credits. Date September 30, 2022 General Journal Debit Credit Record entry Clear entry View general journal At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. Required: a-1. Use the horizontal model to show the effect of the accrual that should have been made as of September 30, 2022. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Balance Sheet Income Statement Liabilities Stockholders' Equity Net Income Revenues Expenses Payroll taxes payable 4,700+ Payroll tax expense At September 30, 2022, the end of the first year of operations at Lukancic Incorporated, the firm's accountant neglected to accrue payroll taxes of $4,700 that were applicable to payrolls for the year then ended. c. Assume that when the payroll taxes were paid in October 2022, the payroll tax expense account was charged. Assume that at September 30, 2023, the accountant again neglected to accrue the payroll tax liability, which was $5,000 at that date. Determine the income statement and balance sheet effects of not accruing payroll taxes at September 30, 2023. Effect on net income for year ended September 30, 2023: Net effect is that expenses this year are Answer is complete but not entirely correct. $ 5,000 too low and net income this year is $ 4,700 too high $ 4,700 overstated and the retained earnings account is $ 4,700 overstated Effect on the September 30, 2023 balance sheet: Current liabilities are