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 1 st 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 1 st, 2023. On January 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per 11 share. 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: 291 Record the necessary adjusting entries related to pre-paid expense as separate journal entries. 2 Interest expense will be recorded as an operating expense item on the income statement. As of the end of the month, 4,620 cars were completed for Highland Inc. and the performance obligation had been met on those 4,620 cars. As such, revenue was determined to be earned on those 4,620 vehicles and it was noted that each vehicle costed $3,300 to manufacture. (These journal entries 3 are considered 2 of the 10 total adjusting entries). When reviewing the supply room as of the end of the month, Mason Automation noted that it had $3 4 Million worth of supplies still on hand. 5 There should be two separate entries related to payroll that is recorded. Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 10% of receivables 6 as an estimation. Note on Balance Sheet: When preparing the balance sheet, close out net income to retained earnings. Note: ITEMS IN WHITE ARE ITEMS THAT COULD BE FILLED IN BY YOU. JUST BECAUSE IT IS WHITE, DOES NOT MEAN THERE HAS TO BE SOMETHING THERE. Mason Automation Liabilities and Stockholders Equity Current Liabilities Total Current Liabilities Long Term Liabilities Total Property Plant and Equipment (EnterAccountDe Total Long Term Liabilities Intangible Assets Total Intangible Assets Total Liabilities Total Assets Total Liabilities and Stockholders Equity Check Figure