Morgan and Lily company are the same. I think it is a typo in the system. I need clarification and calculations for the sections in red. Thank you!

CALCULATOR PRINTER VERSION A BACK Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company's balance sheet at December 31, 2019, is presented below. Cash MORGAN COMPANY Balance Sheet December 31, 2019 $31,000 Accounts Payable 30,750 Interest Payable 7,380 Notes Payable 37,800 Owner's Capital $13,750 278 Inventory Prepaid Insurance Equipment 55,500 37,402 $106,930 $106,930 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) Morgan paid $278 interest on the note payable on January 1, 2020. The note is due December 31, 2021. Morgan purchased $240,000 of inventory on account. Morgan sold for $487,000 cash, inventory which cost $260,000. Morgan also collected $31,655 in sales taxes. Morgan paid $227,000 in accounts payable. Morgan paid $15,000 in sales taxes to the state. Paid other operating expenses of $19,000. On January 31, 2020, the payroll for the month consists of salaries and wages of $58,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,900 federal income taxes are withheld. The salaries and wages are paid on February 1. 5 Adjustment data: Help | System Announcements LILY COMPANY Trial Balance January 31, 2020 Debit 10 Cash 518655 Inventory 26000 Accounts Payable DON Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Expense 58000 Owner's Capital Interest Expense Palec Rovania PDF 2021 Registration....pdf 31655 Sales Taxes Payable 579 Depreciation Expense 579 Accumulated Depreciation-Equipment Other Operating Expenses 19000 Payroll Tax Expense Salaries and Wages Payable 44663 FICA Taxes Payable State Unemployment Taxes Payable 3132 Federal Income Taxes Payable 8900 Federal Unemployment Taxes Payable Total Assets Current Assets Cash 288377 Inventory 10750 Equipment 37800 X Total Current Assets 336927 Current Liabilities Accounts Payable II TE Owner's Equity Interest Payable 278 FICA Taxes Payable M Sales Taxes Payable 31655 Een Salaries and Wages Payable 58000 da. Federal Income Taxes Payable Federal Unemployment Taxes Payable 55500 State Income Taxes Payable ( || Property plant and Fouinment Current Liabilities Accounts Payable 26750 Interest Payable 278 FICA Taxes Payable Sales Taxes Payable 31655 Salaries and Wages Payable 58000 Federal Income Taxes Payable Federal Unemployment Taxes Payable 55500 SHE State Income Taxes Payable Sotal Current Lates T Property plant and Fouinment TULSELUM Lantes $ Property, Plant and Equipment V Click if you would like to Show Work for this question: Open Show Work CALCULATOR PRINTER VERSION A BACK Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company's balance sheet at December 31, 2019, is presented below. Cash MORGAN COMPANY Balance Sheet December 31, 2019 $31,000 Accounts Payable 30,750 Interest Payable 7,380 Notes Payable 37,800 Owner's Capital $13,750 278 Inventory Prepaid Insurance Equipment 55,500 37,402 $106,930 $106,930 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) Morgan paid $278 interest on the note payable on January 1, 2020. The note is due December 31, 2021. Morgan purchased $240,000 of inventory on account. Morgan sold for $487,000 cash, inventory which cost $260,000. Morgan also collected $31,655 in sales taxes. Morgan paid $227,000 in accounts payable. Morgan paid $15,000 in sales taxes to the state. Paid other operating expenses of $19,000. On January 31, 2020, the payroll for the month consists of salaries and wages of $58,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,900 federal income taxes are withheld. The salaries and wages are paid on February 1. 5 Adjustment data: Help | System Announcements LILY COMPANY Trial Balance January 31, 2020 Debit 10 Cash 518655 Inventory 26000 Accounts Payable DON Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Expense 58000 Owner's Capital Interest Expense Palec Rovania PDF 2021 Registration....pdf 31655 Sales Taxes Payable 579 Depreciation Expense 579 Accumulated Depreciation-Equipment Other Operating Expenses 19000 Payroll Tax Expense Salaries and Wages Payable 44663 FICA Taxes Payable State Unemployment Taxes Payable 3132 Federal Income Taxes Payable 8900 Federal Unemployment Taxes Payable Total Assets Current Assets Cash 288377 Inventory 10750 Equipment 37800 X Total Current Assets 336927 Current Liabilities Accounts Payable II TE Owner's Equity Interest Payable 278 FICA Taxes Payable M Sales Taxes Payable 31655 Een Salaries and Wages Payable 58000 da. Federal Income Taxes Payable Federal Unemployment Taxes Payable 55500 State Income Taxes Payable ( || Property plant and Fouinment Current Liabilities Accounts Payable 26750 Interest Payable 278 FICA Taxes Payable Sales Taxes Payable 31655 Salaries and Wages Payable 58000 Federal Income Taxes Payable Federal Unemployment Taxes Payable 55500 SHE State Income Taxes Payable Sotal Current Lates T Property plant and Fouinment TULSELUM Lantes $ Property, Plant and Equipment V Click if you would like to Show Work for this question: Open Show Work