Question
CH 11 Question 1 of 20 < > $85,895 -/0.5 $85,895 During January 2022, the following transactions occurred. (Swifty Company uses the perpetual inventory
CH 11 Question 1 of 20 < > $85,895 -/0.5 $85,895 During January 2022, the following transactions occurred. (Swifty Company uses the perpetual inventory system.) 1. Swifty paid $205 interest on the note payable on January 1, 2022. The note is due December 31. 2023. 2. Swifty purchased $214,102 of inventory on account. 3. Swifty sold for $360,800 cash, inventory which cost $217,300. Swifty also collected $23,452 in sales taxes. 4. Swifty paid $188,600 in accounts payable. 5. Swifty paid $13,940 in sales taxes to the state. 6. Paid other operating expenses of $24,600. 7. On January 31, 2022, the payroll for the month consists of salaries and wages of $50,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $7,300 federal income taxes are withheld. The salaries and wages are paid on February 1. Adjustment data: 8. Interest expense of $205 has been incurred in January on the notes payable. 9. The insurance for the year 2022 was prepaid on December 31, 2021. 10. 11. The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $1,640 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax. Prepare journal entries for the transactions listed above and the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started