Morgan Company's balance sheet at December 31, 2019, is presented below. MORGAN COMPANY Balance Sheet December 31, 2019 531,000 Accounts Payable $12.750 Cash Inventory Prepaid Insurance Equipment 50.000 38,040 Owner's $106,908 $106.900 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $250 interest on the note payable on January 1, 2020. The note is due December 31, 2021. ? Morgan purchased $241,000 of inventory on account. Morgan sold for $494,000 cash, inventory which cost $269,000. Morgan also collected $32,110 in sales taxes. * Morgan paid $223,000 in accounts payable. * Morgan paid $17,500 in sales taxes to the state. * Paid other operating expenses of $20,500. 1. On January 31, 2020, the payroll for the month consists of salaries and wages of $60,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,600 federal income taxes are withheld. The salaries and wages are paid on February 1. Adjustment data: Interest expense of $250 has been incurred on the notes payable. The insurance for the year 2020 was prepaid on December 31, 2019. 10. The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $2,940 salvage value. 11. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.8% federal unemployment tax. Your answer is partially correct. Try again. Prepare journal entries for the transactions listed above and the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places, e.g. 5,275.) Interest Payable Inventory Accounts Payable Sales Revenue Cost of Inventory Accountable cash Other Operating Expenses cash Salaries and West Federal Income To Payable FICAT Payable Interest Expense Prepaid Insurance 10 Depreciation bene Accumud Depreciation toomt Payroll Taxe E FICA Teste State Unemployment Towes Payable rederal Unemployment Tes y LINK TO THAT IT IN Your answer is partially correct. Try again. Prepare an adjusted trial balance at January 31, 2020. (Round answers to decimal places, e.g. 5,275.) LILY COMPANY Trial Balance January 31, 2020 Sales Revenue Cost of Goods Sold Other Operating Expenses Depreciation Expen Depreciation Expense Insurance Expense riment Salaries and Wages Expense Accumulated Depreciation Equipment Payroll Tax Expense Recounts Payable Owner's Capital Salaries and Wages Expense Sales to Pay Sales Table Your answer is partially correct. Try again. Prepare an income statement. (Round answers to decimal places, e.g. 5,275.) LILY COMPANY Income Statement For the Month Ended a 2020 Cost of Good Gross Prot/(Loss) Salaries and Wages Experte interest Expense DO!! rance Expense Depreciation Deprecation Expense other Operating Expenses Your answer is partially correct. Try again. Prepare an owner's equity statement for the month ending January 31, 2020. (Round answers to 0 decimal places, e.g. 5,275.) LILY COMPANY Owner's Equity Statement w the Month Ended 1.2020 LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare a classified balance sheet as of January 31, 2020. (List current assets in order of liquidity. Round answers to o decimal places, e.g. 5,275.) LILY COMPANY Balance Sheet January 31, 2020 Assets Current Act very Prepard Insurance Total Current Assets Property, plant and Equipment rument 5 Acum Depreciation woment Total Current Assets LILY COMPANY Balance Sheet January 31, 2020 Assets Current Assets Inventory Prepaid Insurance Total Current Assets Property. Plant and Equipment Equipment 5 Less Accumulated Depreciation-ipment Total Current Assets Liabilities and Owner's Equity Current Labs Accounts Payable Interest Payable Notes Payable Sales Taxes Payable FICA Taxes Payable Salaries and Wages Payable Owner's Capital
