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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
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 7.65% FICA taxes. A total of $8,900 federal income taxes are withheld. The salaries are paid on March 1. 28 The company develops the following adjustment data. Interest expense of $375 has been incurred on the note. Employer payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and a 0.8% federal unemployment tax. Some sales were made under warranty. Of the units sold under warranty, 350
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