Question
Q1 The adjusted trial balance of West Company at January 31, 2021, shows Salaries and Wages Payable of $3,200 and Salaries and Wages Expense of
Purchase of land 20000
Contractor for construction of the shop building 80000
Excavation costs for new building. 10000
Commission fee paid to real estate agency 1,500
equipment for shop 8000
interest paid on borrowed money of which 5000 was during contruction of new shop 8000
cost of filling and grading the land 3000
On April 1: 2020, company borrowed $50,000 from bank by signing a one-year, 6% note. The principal & interest has to be paid at the maturity of the note on March 31, 2021.
On Dec. 31, 2020, company made the necessary journal entry to record accrued interest on note. Provide the journal entry that company must made on March 31, 2021 for payoff of the note.
On june 1, 2020, Company paid $18,000 for salaries and wages for the month. Applicable federal income tax rate is 20%, state income tax rate is 6%, FICA tax rate is 7.65%, Federal Unemployment Taxes 0.80%; State Unemployment Taxes 5.40%. Provide a composite journal entry to record this transaction.
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