Swifty Company's balance sheet at December $31,2021,$ is presented below. Interest expense of $$270$ has been incurred in January on the notes payable.

The insurance for the year $2022$ was prepaid on December $31,2021.$

The equipment was acquired on December $31,2021,$ and will be depreciated on a straight$-$line basis over $5$ years with a

$$2,160$ salvage value.

Employer's payroll taxes include $7\mathrm{.}65\%$ FICA taxes, a $5\mathrm{.}4\%$ state unemployment tax, and an $0\mathrm{.}6\%$ federal unemployment tax.

$($a$)$

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 $0$ decimal places, e$.$g$.5,275.)$

No$.$ Account Titles and Explanation

Credit

Interest Payable

Cash

Accounts Payable

$($To record sales revenue.$)$

During January $2022,$ the following transactions occurred. $($Swifty Company uses the perpetual inventory system.$)$

Swifty paid $$270$ interest on the note payable on January $1,2022.$ The note is due December $31,2023.$

Swifty purchased $$281,988$ of inventory on account.

Swifty sold for $$475,200$ cash, inventory which cost $$286,200.$ Swifty also collected $$30,888$ in sales taxes.

Swifty paid $$248,400$ in accounts payable.

Swifty paid $$18,360$ in sales taxes to the state.

Paid other operating expenses of $$32,400.$

On January $31,2022,$ the payroll for the month consists of salaries and wages of $$76,000.$ All salaries and wages are subject

to $7\mathrm{.}65\%$ FICA taxes. A total of $$9,640$ federal income taxes are withheld. The salaries and wages are paid on February $1.$