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of November 30, 2018, TLR's financial statements reported the following selected amounts: Net Purchases $ 70,000, Ending Inventory $32,3001, accounts payable $4,9172, current assets $150,000,

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of November 30, 2018, TLR's financial statements reported the following selected amounts: Net Purchases $ 70,000, Ending Inventory $32,3001, accounts payable $4,9172, current assets $150,000, and current liabilities $50,000. During the month of December 2018, the Company entered into the following two transactions only. The Company uses the periodic system of inventory record keeping, December 27, 2018 Purchased a shipment of specialized lithium batteries, on account, for $9,000 plus $1,000 in sales taxes from Ward Battery Wholesaler, terms 2/10, n/60. December 31, 2018: The employees earned wages totaling $50,000 for the month of December 2018. When disbursing the wages to the employees, the Company withheld from this amount employee income taxes totaling $7,000 and FICA3 taxes totaling $2,625. The net pay was directly deposited into the employees' bank accounts on December 31, 2018. The Company remitted all payroll taxes for the month of December 2018 to Federal Government on January 1, 2019. Required 1. Prepare the necessary journal entries, in the books of Tadakamalla Lightning Retailers, to record the above two transactions. For the wages transaction assume that the Company, in addition to matching the FICA taxes, was also required to pay $250 of unemployment taxes to the State Government for this pay period. 2. Show the impact of each transaction, separately, on the accounting equation in amounts. 3. What amount would be reported as the total payroll expenses on Company's income statement for the month of December 2018? What would be the amount of net pay that was directly deposited by the Company into employees' bank accounts? 4. Compute the following as of December 31, 2018: cost of goods sold, current ratio, working capital, accounts payable turnover in days. Explain in plain English if the ratios are improving or deteriorating from end of November to end of December

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