Indiana Jones Company had the following selected transactions.

Feb. $1$ Signs a $$50,000,6-$month, $9\%-$interest$-$bearing note payable to CitiBank and receives $$50,000$ in cash.

$10$ Cash register sales total $$43,200,$ which includes an $8\%$ sales tax.

$28$ The payroll for the month consists of salaries and wages of $$50,000.$ All wages are subject to $7\mathrm{.}65\%$ FICA taxes. A total of $$8,900$ federal income taxes are withheld. The salaries are paid on March $1.$

The company develops the following adjustment data.

$28$

Interest expense of $$375$ has been incurred on the note.

Employer payroll taxes include $7\mathrm{.}65\%$ FICA taxes, a $5\mathrm{.}4\%$ state unemployment tax, and a $0\mathrm{.}8\%$ federal unemployment tax.

Some sales were made under warranty. Of the units sold under warranty, $350$ are expected to become defective. Repair costs are estimated to be $$40$ per unit.

Instructions

a$.$ Journalize the February transactions.

b$.$ Journalize the adjusting entries at February $28.$