Question 1

Make the correcting entry for each of the following:

a) You purchased Office Furniture for $6500 cash - there was no financing. You debited Office Furniture and credited Accounts Receivable for $6500.

b) You paid the monthly rent, $5000. You debited Rent Expense and credited Supplies for $5000.

Question 2

You own a flower shop. You have one employee. She worked 43 hours this week. Her pay rate is $20 per hour - she is entitled to overtime. You withheld 15% of her pay for federal income tax. You withheld 10% of her pay for state income tax. You withheld 6.2% of her pay for social security tax. You withheld 1.45% of her pay for medicare tax.

Required: Journalize the payroll for the week.

Question 3

Based on the data below, complete a bank reconciliation:

Bank Statement Balance = $11,000

Book Balance = $14,000

Deposit in Transit = $5000

Outstanding Check = $1000

NSF Check = $300

Penalty on Overdraft = $50

Bank Service Charge = $50

Unrecorded ATM Withdrawal = $600

Check # 101 was written for $2000 but recorded as $4000