Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. charger inc. had the following items that require

Charger Inc. had the following items that require adjusting entries at the end of the...

50.1K

Verified Solution

Question

Accounting

Charger Inc. had the following items that require adjusting entries at the end of the year.

a. Charger pays its employees $3,000 every Friday for a 5-day work week. This year December 31 falls on a Wednesday.
b. Charger earned income of $760,000 for the year for tax purposes. Its effective tax rate is 35%. These taxes must be paid by April 15 of next year.
c. Charger borrowed $320,000 with a note payable dated August 1. This note specifies 6%. The interest and principal are due on March 31 of the following year.
d. Chargers president earns a bonus equal to 10% of income in excess of $620,000. Income for the year was $760,000. This bonus is paid in May of the following year and any expense is charged to wages expense.

Required:

Prepare the adjusting journal entries to record these transactions at the end of the current year.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Plaque builds up on the walls of an artery decreasing its diameter from 1.16 cm to...

General Management
1.2K views

Explain two differences between Services and Manufacturing with one example each. no plagiarism please here are some...

Accounting
1.2K views

The Little Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions 6 Budgeted number of...

Geometry
1.2K views

degrees 2 245 degrees 3 20 degrees 4 95 degrees For problems 5 6 convert...

Statistics
1.2K views

2 0996 B 0 3987 C 0 0001 D 0 0083 3 The margin of...

Accounting
1.2K views

1.What valuation techniques do we adopt for bonds and preferred/common stocks? ...

Accounting
1.2K views

Sandy Bank, Inc., makes one model of wooden canoe. Partial information for it follows: ...

Accounting
1.2K views

Mr. Francisco Rosario started a consulting service business in Newark, New Jersey on January 1,...

Accounting
1.2K views

Can you explain the steps to find the answer to the red squares? Thank you...

Accounting
1.2K views

157) For a journal entry with only two lines, the following entry is valid Increase...

Accounting
1.2K views

Mars Dump is a multinational company that is caught by the Emissions Trading Scheme (ETS)....

Finance
1.2K views

PRESENT VALUE Of an annuity due) Determine the present value of an annuity due of...