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jounedal entries using a perpetual invetory system Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of
jounedal entries using a perpetual invetory system
Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended December 31. FFL adjusts its records only at year-end. Jan. 6 Purchased and received 60 nutritional bars for $100,n/45. Jan. 8 FFL sold 70 nutritional bars to Big Jim for $464 cash, which includes $44 of sales tax. Assume the cost of goods sold is $109. Apr. 30 FFL received $57,000 from Commerce Bank after signing a 24-month, 4 percent, promissory note. Aug. 31 FFL signed a 6-month contract to sublease a portion of its building, FFL also received a $18,000 check for six months' rent. Dec. 30 FFL paid employees' net pay through December 31, using direct deposits totaling $2,730, for 250 total hours at a $15 hourly wage. The company had withheld FICA of $360, United Way contributions of $220, and income tax of $440. Dec. 31 FFL adjusted the accounts at year-end, relating to (a) employer payroll taxes, including FICA and $230 of unemployment taxes, (b) interest, and (c) rent. Required: For each of the above dates, prepare the required journal entries (using a perpetual inventory system) and the adjusting journal entries Step by Step Solution
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