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Thornwood Tile had the following items that require adjusting entries at the end of the year. a. Thornwood pays payroll of $180,000 every other Friday
Thornwood Tile had the following items that require adjusting entries at the end of the year.
a. | Thornwood pays payroll of $180,000 every other Friday for a 2-week period. This year the last payday is Friday, December 26. (Note: The work week is Monday through Friday.) |
b. | Thornwood purchased $350,000 of tile on June 1 with a note payable requiring 12% interest. The interest and principal on this note are due within 1 year. As of December 31, Thornwood had not made any principal or interest payments. |
c. | Thornwoods earned income is $900,000 for the year for tax purposes. Its effective tax rate is 30%. These taxes must be paid by April 15 of next year. |
Required:
Prepare the adjusting journal entries to record these transactions at the end of the current year. |
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