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TJ Tile had the following items that require adjusting entries at the end of the year. TJ pays payroll of $31,100 every other Friday for
TJ Tile had the following items that require adjusting entries at the end of the year.
- TJ pays payroll of $31,100 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.)
- TJ purchased $140,000 of tile on July 1 with a note payable requiring 10% interest. The interest and principal on this note are due within 1 year. As of December 31, TJ had not made any principal or interest payments.
- TJs earned income is $520,000 for the year for tax purposes. Its effective tax rate is 25%. 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. If an amount box does not require an entry, leave it blank.
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