Mason Automotive purchased $180 Million dollars worth of inventory on January 4th, 2024. \$88 Million was paid 4 With cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. Ed Mason, the CEO, hires 4,300 employees, whom will receive a combined salary of $8.2 Million on a monthly basis. The employees started on January 1 st and will be paid for the month of January on February 6 th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, January 1st, 2024. Mason Automotive purchases fixed assets of $160 Million that will have a useful life of 16 years and a salvage value of $50 million on January 8th,2024.$70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. bond will have a useful life of 14 years with an interest payment of 8.25% (Annual Percentage Rate) due at the end of the month. Pecord the necessary journal entry as of January 8 th, 2024. Note: When considering the amortization of the discount or premium, assume the straight line method is used. interest will be accrued on a monthly basis. \begin{tabular}{|c|c|} \hline 8 & Mason Automotive pre pays for rent Expense for the next four years of \$26 Million on January 1st, 2024. \\ \hline 9 & Mason Automotive purchased \$7.5 Million dollars worth of supplies on account on January 13 th, 2024. \\ \hline 10 & \begin{tabular}{l} On Jantary 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were \\ FOB Destination. The first part of the delivery was received by Pather Paws on January 27 th with a sales value of \\ $162 Million and the inventory cost was $87 Million. The second part of the delivery was received on February \\ 3 rd with a sales value of $250 Million and an inventory cost of $175 Million. Assume that this sale was made on \\ account. \end{tabular} \\ \hline 11 & On January 23 \\ \hline \end{tabular} JE \# Debit Account Credit Account Debit Amount (\$) Credit Amount (\$) 1 Cast 2 3 4 5 6 7 8 9 10 9 10 11 Adjusting Entries Ad) 1 Ad) 2 Ad] 3 Ad) 4 Ad) 5 Ad) 6 Ad) 7 Ad) 8 Page 2 of 6 Ad) 5 Adj 6 Ad] 7 Adj 8 Ad) 9 Ad) 10 Check 147,000,000 147,000,000 OK OK Supplies rederal income Tax Parable \begin{tabular}{|l|l|} \hline Debits & Credits \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Debits \\ \hline & \\ & \\ \hline \end{tabular} Pre-pald Expense State income Tax Payable Debils Credits Property PLant and Equipment liend Payable \begin{tabular}{|l|l|} \hline Property punt and Cquipment \\ \hline Debits & Credis \\ \hline & \\ \hline \end{tabular} Accumulated Depreciatien DiscountPremivem Debas. Credits Debits. Credits Patent Detifs Credits \begin{tabular}{|l|l|} \hline Disount/Pieniven Codits \\ \hline & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline & Opening Balance Sheet & Debit & Credit & Adputed Trial Balance \\ \hline Cash & & 147,000,000 & & 147,000,000 \\ \hline Accounts recelvabie & & + & & \\ \hline Aliowance for Doubttul Accounts & + & & + & + \\ \hline Imventory & + & & &. \\ \hline Suppies & & & & \\ \hline Pre-paid Expense & = & & & \\ \hline Property phant and Equpment & + & & & - \\ \hline Accumulated Deperesiation & & & + & \\ \hline patent & & & & \\ \hline Accounts Payabie & - & - & + & \\ \hline Unearned Aevenue & & & & \\ \hline Salaries and Waces Parable & = & & . & \\ \hline Hica wetwholding Parable &. & & & \\ \hline Federal income Tax Payahle & & - & & \\ \hline State income Tax Prrable Paratile & & & & \\ \hline Eand Parable & - & & + & \\ \hline Premiumpoiscount & & & + & + \\ \hline Common stotk & + & & 35,000000 & (15,000,000) \\ \hline Additanal pardin caphal & & & 112.000,000 & {[112,000,000]} \\ \hline Treasury stock & & & & \\ \hline Betained Cornings & = & & & \\ \hline Brivenus & & E & & + \\ \hline Cenclocods sold & & & & = \\ \hline Bemcipence & & + & & \\ \hline Sobvies and wages croense &. & & & \\ \hline Parroli tormenente & & & & \\ \hline Deporeclation cxpenye & & & & + \\ \hline amortuman (ropenie (patent) & & + & & \\ \hline Eadoest cxpente &. & & & \\ \hline Supplitiopenie & & & & \\ \hline imerent copense & + & & & \\ \hline Totoh & & 147,000,000 & 147,000,000 & \\ \hline \end{tabular} Operating Expenses (Selling and Administratlve)
