Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Vaughn Company's balance sheet at December 31, 2021, is presented below. VAUGHN COMPANY Balance Sheet December 31, 2021 Cash $29,400 Accounts Payable $13,475 Inventory
Vaughn Company's balance sheet at December 31, 2021, is presented below. VAUGHN COMPANY Balance Sheet December 31, 2021 Cash $29,400 Accounts Payable $13,475 Inventory 30,135 Interest Payable 245 Prepaid Insurance Equipment 5,880 Notes Payable 49,000 37,240 Owner's Capital 39,935 $102,655 $102,655 During January 2022, the following transactions occurred. (Vaughn Company uses the perpetual inventory system.) 1 2 Vaughn paid $245 interest on the note payable on January 1, 2022. The note is due December 31, 2023. Vaughn purchased $255,878 of inventory on account. 3. Vaughn sold for $431,200 cash, inventory which cost $259,700. Vaughn also collected $28,028 in sales taxes. 4. Vaughn paid $225,400 in accounts payable. 5. Vaughn paid $16,660 in sales taxes to the state. 6. Paid other operating expenses of $29,400. 7. On January 31, 2022, the payroll for the month consists of salaries and wages of $66,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,740 federal income taxes are withheld. The salaries and wages are paid on February 1. Adjustment data: 8. Interest expense of $245 has been incurred in January on the notes payable. 9. The insurance for the year 2022 was prepaid on December 31, 2021. 10. 11. The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $1,960 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax. AC116 M2-Competency Assessment: Part 4 2401C Question 1 of 1 < > 1.48/5 Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 5,275.) Cash Inventory Cost of Goods Sold VAUGHN COMPANY Trial Balance January 31, 2022 Debit 216923 3822 Credit 3822 259700 259700 Accounts Payable 30478 30478 Other Operating Expenses 29400 29400 Salaries and Wages Expense 66000 66000 Interest Expense 245 245 Insurance Expense 490 490 Depreciation Expense 588 588 Payroll Tax Expense 9009 Sales Revenue 431200 Sales Taxes Payable 9009 431200 16660 16660 FICA Taxes Payable 5049 5049 Federal Income Taxes Payable 8740 8740 State Unemployment Taxes Payable 3564 3564 Federal Unemployment Taxes Payable 396 396 Prepaid Insurance Accumulated Depreciation-Equipment 490 490 SUPPORT 588 588
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started