Morgan Company's balance sheet at December 31, 2019, is presented below. MORGAN COMPANY Balance Sheet December 31, 2019 Cash $30,500 Accounts Payable $13,250 Inventory 30,000 Interest Payable 265 Prepaid Insurance 6.792 Notes Payable 53,000 Equipment 38,520 Owner's Capital 39.297 $105,812 $105,812 1 2 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) Morgan paid $265 interest on the note payable on January 1, 2020. The note is due December 31, 2021. Morgan purchased $243,000 of inventory on account. Morgan sold for $482,000 cash, inventory which cost $268,000, Morgan also collected $31,330 in sales taxes Morgan paid $222,000 in accounts payable. Morgan paid $18,000 in sales taxes to the state. Pald other operating expenses of $18.000. On January 31, 2020, the payroll for the month consists of salaries and wages of $56,000. All stories and we are subject to 765XFICA taxes. A total of $8.600 federal income taxes are withheld. The salaries and wages are paidon February 3 4 23 ty 30 000 230 10 # A 3 4 % 5 6 & 7 * 0 9 0 E 70 T Y U O D F G H L Adjustment data: B 9. 10 Interest expense of $265 has been incurred on the notes payable The insurance for the year 2020 was prepaid on December 31, 2019. The equipment was acquired on December 31, 2019, and will be deprecated on a straight-line basis over 5 years with a $2,700 salvaga value Emplayer's payroll taxes Include 7,65% FICA taxes, a 54% state unemployment tax, and an 0.8% federal unemployment 11 (5) 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 found answers to decimal places, c. 5,275) No Account Titles and Explanation Debit Credit 1 SO . 2 S 4 3 % 5 & 7 6 CO* ) 0 9 Q W E R T Y U O a 4 S D F G H J L N C V V V 00 B N M # 9 alt command 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 decimal places, s. 5,275J Debit Credit No. Account Titles and Explanation 1. 2 (To record sales revenue.) To record cost of goods sold.) BO 88 VE A $ 4 # % 5 & 7 3 6 8 WT 9 0 E R T Y U o D F G H J J K L ? C V B N M 9 all (To record cost of goods sold.) 4 5. 6. 7 SO ENT FE 4. % 5 & 7 3 4 6 8 9 0 E R T Y Y U o P D F G H J V B B N M 96 8. 9. 10. 11. Textbook and Media of Accounts Attems of used SO SIES $ 4 % 5 3 & 7 6 8 9 0 E R T Y U I O P D F G H J J K L