Question
Knockoff Corporation sells a videogame unit known as the Gii. During the month of December. The following events occur. Prepare necessary journal entries and adjusting
Knockoff Corporation sells a videogame unit known as the Gii. During the month of December. The following events occur.
Prepare necessary journal entries and adjusting entries that Knockoff should record:
1) Knockoff purchased $300,000.00 of inventory on account?
2) The company incurs salary expenses of $45,000.00, although employes will not be paid until the beginning of January. The company also owes an additional $7,000.00 to the government for payroll taxes?
3) Knockoff determines that it owes the IRS $120,000.00 in income taxes for this year?
4) A retail customer places an advance order for Giis and pays knockoff $23,000.00. The Giis will be shipped in January?
5) Knockoff owes a local bank $4,000.00 in interest on a loan?
6) Knockoff rents a warehouse of $3,000.00 per week. No payment were made for the last three weeks of the year?
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1 Account Title Debit Credit Purchases 300000 Accounts Payable 300000 2 Salaries Expense 45000 Payroll tax expense 7000 Salaries Payable 45000 Withhol...Get Instant Access to Expert-Tailored Solutions
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