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 CHART OF ACCOUNTS Thornwood Tile General Ledger ASSETS 111 Cash 112 Petty Cash 121 Accounts Receivable 123 Allowance for Doubtful Accounts 124 Notes Receivable 125 Supplies 126 Prepaid Insurance 127 Prepaid Rent 128 Inventory 129 Interest Receivable 130 Investment 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 139 Accumulated Depreciation LIABILITIES 211 Accounts Payable 212 Utilities Payable 213 Insurance Payable 214 Interest Payable 215 Warranty Liability 216 Income Taxes Payable 221 Excise Taxes Payable (Federal) 222 Excise Taxes Payable (State) 223 Property Taxes Payable 224 Sales Taxes Payable (State) 231 Wages Payable 233 Commissions Payable 234 Federal Income Taxes Withholding Payable 235 State Income Taxes Withholding Payable 236 Social Security Taxes Payable 237 Medicare Taxes Payable 238 Charitable Contributions Payable 239 Union Dues Payable 241 Federal Unemployment Taxes Payable 242 State Unemployment Taxes Payable 251 Unearned Sales Revenue 252 Unearned Rent Revenue 261 Bonds Payable 262 Notes Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Insurance Expense 516 Repairs and Maintenance Expense 517 Bad Debt Expense 518 Rent Expense 519 Warranty Expense 521 Wages Expense 523 Commissions Expense 524 Social Security Taxes Expense 525 Medicare Taxes Expense 526 Federal Unemployment Taxes Expense 527 State Unemployment Taxes Expense 531 Interest Expense 541 Amortization Expense 542 Depreciation Expense 551 Income Taxes Expense 552 Property Taxes Expense

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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.

CHART OF ACCOUNTS

Thornwood Tile

General Ledger

	ASSETS
111	Cash
112	Petty Cash
121	Accounts Receivable
123	Allowance for Doubtful Accounts
124	Notes Receivable
125	Supplies
126	Prepaid Insurance
127	Prepaid Rent
128	Inventory
129	Interest Receivable
130	Investment
131	Land
132	Buildings
133	Equipment
134	Furniture
135	Trucks
139	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
212	Utilities Payable
213	Insurance Payable
214	Interest Payable
215	Warranty Liability
216	Income Taxes Payable
221	Excise Taxes Payable (Federal)
222	Excise Taxes Payable (State)
223	Property Taxes Payable
224	Sales Taxes Payable (State)
231	Wages Payable
233	Commissions Payable
234	Federal Income Taxes Withholding Payable
235	State Income Taxes Withholding Payable
236	Social Security Taxes Payable
237	Medicare Taxes Payable
238	Charitable Contributions Payable
239	Union Dues Payable
241	Federal Unemployment Taxes Payable
242	State Unemployment Taxes Payable
251	Unearned Sales Revenue
252	Unearned Rent Revenue
261	Bonds Payable
262	Notes Payable

	EXPENSES
511	Cost of Goods Sold
512	Advertising Expense
513	Supplies Expense
514	Utilities Expense
515	Insurance Expense
516	Repairs and Maintenance Expense
517	Bad Debt Expense
518	Rent Expense
519	Warranty Expense
521	Wages Expense
523	Commissions Expense
524	Social Security Taxes Expense
525	Medicare Taxes Expense
526	Federal Unemployment Taxes Expense
527	State Unemployment Taxes Expense
531	Interest Expense
541	Amortization Expense
542	Depreciation Expense
551	Income Taxes Expense
552	Property Taxes Expense