Introduction Jones Widget Company (JWC) incorporated at the beginning of 2006. Below is the post closing trial balance as of 12/31/2008. Additional Information: JWC establishes a policy that it will sell inventory at $130 per unit. Sales taxes are 5%. JWC will use the FIFO method and record COGS on a perpetual basis. Employee wages are $4,000 per month. Employees are paid on the 16th for the first half of the month and on the first of the following month for the second half of each month. The income taxes withheld are $250 each paycheck, and the FICA taxes are $150 per paycheck. The withholding and the employer's matching contribution are paid monthly on the second day of the month. In addition, unemployment taxes of $50 are accrued with each payroll. The taxes are paid on March 31. The Beginning inventory of $12,300 consists of 200 units. The Prepaid Rent balance is for January of 2009. Trie equipment was purchased on July 1, 2006. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight line method. Unearned Revenue is for 40 units ordered and paid for in advance by two customers in late December. One order (for 10 of trie 40 units) will be filled in January, the remainder in early February. Trie Notes payable represents a $22,000 bank loan received on October 1, 2008 at 9% annual interest. Trie par value on trie common stock is $2 The treasury stock account rias 400 shares. Record all transactions to trie nearest dollar. Below are transactions for January 2009 Jan 1 Paid December 31 payroll previously accrued. Jan 2 A $90,000 6% six year bond is issued. The effective yield is 5%. Jan 2 A truck is purchased for $10,000 cash. It is estimated the truck will be used for 50,000 miles and will have no salvage value. Jan 2 Payroll taxes payable (FIT & FICA) recorded in December of 2008 are remitted to the IRS. Jan 5 A $820 customer account is written off as uncollectible. Jan 6 Sales on account of 180 units of inventory occur during January. Include sales tax of 5%. Jan 10 Sales taxes of $800 which had been collected and recorded in December are paid to the state. Jan 11 An additional 70 units of inventory are purchased on account for $4,410. Jan 12 The equipment purchased in 2006 for $25,000 is sold for $14,500. No additional depreciation is recorded for January. Jan 14 Having sold the equipment, JWC pays off the 2008 note in full. The amount paid is $22,570 which indudes an additional $75 interest through Jan 14. Jan 15 A portion of the advance order from December (10 units) is delivered. There is no sales tax on this order. Jan 16 Record and pay payroll for January 1-15. Record the employer's matching share of FICA taxes And the unemployment taxes also. Jan 20 Half of the treasury stock is sold for $2,500. Jan 21 Collections from sales on account totaled $7,500. Jan 27 Sold the other half of the treasury stock for $1,800. Jan 28 JWC declares and distributes a 40% Stock dividend. The market price of the stock at the time is $9 per share. (Hint on the statement of retained earnings, this amount will should be shown as a dividend). Jan 31 (Adjusting 1) Record depreciation on the truck. During January, the truck is driven 800 miles Jan 31 (Adjusting 2) It is estimated that 3% of the ending accounts receivable balance will be uncollectible. Jan 31 (Adjusting 3) Record January rent expired. Jan 31 (Adjusting 4) Accrue January 31 payroll, which will be payable on February 1. Record the employers matching share of FICA taxes also. Jan 31 (Adjusting 5) Record ONE MONTH'S interest expense and amortization of premium or discount on the bond. Round to the nearest dollar. Introduction Jones Widget Company (JWC) incorporated at the beginning of 2006. Below is the post closing trial balance as of 12/31/2008. Additional Information: JWC establishes a policy that it will sell inventory at $130 per unit. Sales taxes are 5%. JWC will use the FIFO method and record COGS on a perpetual basis. Employee wages are $4,000 per month. Employees are paid on the 16th for the first half of the month and on the first of the following month for the second half of each month. The income taxes withheld are $250 each paycheck, and the FICA taxes are $150 per paycheck. The withholding and the employer's matching contribution are paid monthly on the second day of the month. In addition, unemployment taxes of $50 are accrued with each payroll. The taxes are paid on March 31. The Beginning inventory of $12,300 consists of 200 units. The Prepaid Rent balance is for January of 2009. Trie equipment was purchased on July 1, 2006. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight line method. Unearned Revenue is for 40 units ordered and paid for in advance by two customers in late December. One order (for 10 of trie 40 units) will be filled in January, the remainder in early February. Trie Notes payable represents a $22,000 bank loan received on October 1, 2008 at 9% annual interest. Trie par value on trie common stock is $2 The treasury stock account rias 400 shares. Record all transactions to trie nearest dollar. Below are transactions for January 2009 Jan 1 Paid December 31 payroll previously accrued. Jan 2 A $90,000 6% six year bond is issued. The effective yield is 5%. Jan 2 A truck is purchased for $10,000 cash. It is estimated the truck will be used for 50,000 miles and will have no salvage value. Jan 2 Payroll taxes payable (FIT & FICA) recorded in December of 2008 are remitted to the IRS. Jan 5 A $820 customer account is written off as uncollectible. Jan 6 Sales on account of 180 units of inventory occur during January. Include sales tax of 5%. Jan 10 Sales taxes of $800 which had been collected and recorded in December are paid to the state. Jan 11 An additional 70 units of inventory are purchased on account for $4,410. Jan 12 The equipment purchased in 2006 for $25,000 is sold for $14,500. No additional depreciation is recorded for January. Jan 14 Having sold the equipment, JWC pays off the 2008 note in full. The amount paid is $22,570 which indudes an additional $75 interest through Jan 14. Jan 15 A portion of the advance order from December (10 units) is delivered. There is no sales tax on this order. Jan 16 Record and pay payroll for January 1-15. Record the employer's matching share of FICA taxes And the unemployment taxes also. Jan 20 Half of the treasury stock is sold for $2,500. Jan 21 Collections from sales on account totaled $7,500. Jan 27 Sold the other half of the treasury stock for $1,800. Jan 28 JWC declares and distributes a 40% Stock dividend. The market price of the stock at the time is $9 per share. (Hint on the statement of retained earnings, this amount will should be shown as a dividend). Jan 31 (Adjusting 1) Record depreciation on the truck. During January, the truck is driven 800 miles Jan 31 (Adjusting 2) It is estimated that 3% of the ending accounts receivable balance will be uncollectible. Jan 31 (Adjusting 3) Record January rent expired. Jan 31 (Adjusting 4) Accrue January 31 payroll, which will be payable on February 1. Record the employers matching share of FICA taxes also. Jan 31 (Adjusting 5) Record ONE MONTH'S interest expense and amortization of premium or discount on the bond. Round to the nearest dollar