Bonita Company's balance sheet at December 31, 2021 presented below. BONITA COMPANY Balance Sheet December 31, 2021 Cash $27,000 Accounts Payable $12.375 Inventory 27,675 Interest Payable 225 Prepaid Insurance Equipment 5.400 Notes Payable 45,000 34,200 Owner's Capital 36,675 $94,275 $94,275 During January 2022, the following transactions occurred. (Bonita Company uses the perpetual inventory system) L Bonita paid $225 interest on the note payable on January 1, 2022. The note is due December 31, 2023, 2. Bonita purchased $234,990 of inventory on account. 3 Bonita sold for $396,000 cash, inventory which cost $238.500. Bonita also collected $25,740 in sales taxes 4 Bonita paid $207,000 in accounts payable 5 Bonita paid $15.300 in sales taxes to the state. 6. Paid other operating expenses of $27,000. 7 On January 31, 2022, the payroll for the month consists of salaries and wages of $58.000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8.020 federal income taxes are withheld. The salaries and wares are paid on February 1 Adjustment data 1. Interest expense of $225 has been incurred in January on the notes payable 9 The Insurance for the year 2022 was prepaid on December 31, 2021 10. The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $1,800 salvage value 11 Employer's payroll taxes include 7.65% FICA taxes 5.4% state unemployment tax, and an 0.6% fe federal unemployment tax (a) Your answer is partially correct Prepare journal entries for the transactions fisted above and the adjusting entries. Credit account titles are automatically indented when amount is entered. Do not indentally Round answers to O decimal places, 5.275) No. Account Titles and Explanation Interest P 2 Cau Debit Credit Question 1 of 1 No. Account Titles and Explanation 1. Interest Payable Cash 2. Inventory 3. 4. Accounts Payable Cash Sales Revenue Sales Taxes Payable (To record sales revenue.) Cost of Goods Sold Inventory (To record cost of goods sold.) Accounts Payable Cash Debit Credit 4. Accounts Payable 5. 6. 7. 8. 9. Cash Interest Expense Cash 9. 10. 11. eTextbook and Media