Exercise 8-65 (Algorithmic) Accrued Liabilities Wemple Audio & Video had the following items that require adjusting entries at the end of the year. a. Wemple pays its employees $2,400 every Friday for a 5-day work week. This year December 31 falls on a Thursday. b. Wemple earned income of 5150,000 for the year for tax purposes. Its effective tax rate is 30%. These taxes must be paid by April 15 of next year. C. Wemple borrowed $50,000 with a note payable dated October 1. This note specifies 8%. The interest and principal are due on March 31 of the following year. d. Wemple's president earns a bonus equal to 10% of income in excess of $100,000. Income for the year was $150,000. This bonus is paid in May of the following year and any expense is charged to wages expense. Required: Prepare the adjusting journal entries to record these transactions at the end of the current year. Wages Expense 1.440 x Wages Payable 1,440 x (Record accrued wages) b Income Taxes Expense 45,000 Income Taxes Payable Correct (Record accrued Income taxes) Interest Expense 1,666 x Interest Payable 1.666 x (Record accrued interest) d. Wages Expense 5,000 Wages Payable 9,000 (Record accrued wages)