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Bonita Company's balance sheet at December 3 1 , 2 0 2 1 , is presented below. Cash $ 2 7 0 0 Accounts Payable
Bonita Company's balance sheet at December is presented below.
Cash $ Accounts Payable $
Inventory $ Interest Payable $
Prepaid Insurance $ Notes Payable $
Equipment $ Owner's Capital $
During January the following transactions occurred. Bonita Company uses a the perpetual inventory system.
Bonita paid $ interest on the note payable on January The note is due December
Bonita purchases $ of inventory on account.
Bonita sold for $ cash, inventory which cost $ Bonita also collected $ in sales taxes
Bonita paid $ in accounts payable.
Bonita paid $ in sales taxes to the state.
Paid other operating expenses of $
On January the payroll for the month consists of salaries and wages on $ All salaries and wages are subject to FICA taxes. A total of $ federal income taxes are withheld. The salaries and wages are paid on February
Adjustment data:
Interest expense of $ has been incurred in January on the notes payable.
The insurance for the year was prepaid on December
The equipment was acquired on December and will be depreciated on a straightline basis over years with a $ salvage value.
Employer's payroll taxes include FICA taxes, a state unemployment tax, and an federal unemployment tax.
Prepare journal entries for the transactions listed above and the adjusting entries.
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