prepare journal entries for the following transactions

Transactions for Eagle View for the Month of December 2018

Purchases

Eagle View receives the utility bill for the month. The total amount due is $500, payable net 20. Eagle View also purchases 50 units of inventory at $500 each and 50 more toolkits at $4 each.

Payroll

Eagle View pays its employees for the fifth two weeks of business (November 26 through December 9). The gross pay is $2,200, the employee taxes are $550 and the employer taxes are $550. Part of this has already been accrued in November. Eagle View pays its employees for the sixth two weeks of business (December 10 through December 23). The gross pay is $2,200, the employee taxes are $550 and the employer taxes are $550.

Cash Payments

Eagle View paid the outstanding November liabilities: payroll taxes, sales taxes, utilities, WeMakeIt and the Office Shop bills. Office Shop has offered a discount of 2% and Eagle View paid within the discount period. Eagle View also purchased $400 in advertising in December and paid the December rent.

Sales

You record December cash sales of 10 units for $1,000 each. You also record credit sales to both Happy Time and to Wonderful Widgets of 16 units for $1,000 each. For all sales, sales tax is 5%.

Cash Receipts Wonderful Widgets pays its balance in full after the discount period. Giggles pays for last month's sale within the discount period.