Background Information Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st, 2023 was the first day that Mason was in business. For the month of January, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and TAccounts tab. Ensure you label the entries how I have for Entry \#1. On January 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather Paws on January 7 17th with a sales value of $178.2 Million and the inventory cost was $95.7 Million. The second part of the delivery was received on February 3rd with a sales value of $250 Million and an inventory cost of \$175Million. Assume that this sale was made on account. Mason Automotive purchases fixed assets of $176 Million that will have a useful life of 14 years and a salvage value of $55 million on January 1 st, 2023. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Ed Mason, the CEO, hires 3,870 employees, whom will receive a combined salary of $7.38 Million on a 10 monthly basis. The employees started on January 1st and will be paid for the month of January on February 6th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65\% for FICA. Record the necessary entry as of the date of hire, January 1st, 2023. On January 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per 11 share. Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: Note on Balance Sheet: When preparing the balance sheet, close out net income to retained earnings. Operating Expenses (Selling and Administrative) Background Information Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st, 2023 was the first day that Mason was in business. For the month of January, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and TAccounts tab. Ensure you label the entries how I have for Entry \#1. On January 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather Paws on January 7 17th with a sales value of $178.2 Million and the inventory cost was $95.7 Million. The second part of the delivery was received on February 3rd with a sales value of $250 Million and an inventory cost of \$175Million. Assume that this sale was made on account. Mason Automotive purchases fixed assets of $176 Million that will have a useful life of 14 years and a salvage value of $55 million on January 1 st, 2023. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Ed Mason, the CEO, hires 3,870 employees, whom will receive a combined salary of $7.38 Million on a 10 monthly basis. The employees started on January 1st and will be paid for the month of January on February 6th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65\% for FICA. Record the necessary entry as of the date of hire, January 1st, 2023. On January 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per 11 share. Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: Note on Balance Sheet: When preparing the balance sheet, close out net income to retained earnings. Operating Expenses (Selling and Administrative)
