90.2K

Verified Solution

Link Copied!

Journalize and post the following transactions

Evaluation of the years sales indicated that warranties related to current years sales

are estimated to be $$30,000.$

The balance in notes payable is related to a $3-$year $6\%$ note signed on June $1,2024.$

The annual liability insurance policy was renewed on August $1,2023.$ $$3,000$ was left from last year.

Office supplies on hand were $$4,100$ and store supplies on hand were $$72,750.$

Depreciation on the building is calculated using straight line with a $50$ year life and $$50,000$ residual value.

Depreciation for the office equipment is calculated using double declining balance method, has

a five year life and it is expected to have a $$5,000$ residual value. Round to the nearest dollar.

Store equipment has an expected useful life of $4$ years, no residual value and is being depreciated using

the straight line method. It was purchased on June $1,2023.$

Payroll for June is going to be paid in early July. Salaries earned were $$39,000.$ The FICA rate is $7\mathrm{.}65\%$

and is paid by both the employee and the employer. Employee income taxes are withheld at a rate of $15\%.$Evaluation of the years sales indicated that warranties related to current years sales

are estimated to be $$30,000.$

The balance in notes payable is related to a $3-$year $6\%$ note signed on June $1,2024.$

The annual liability insurance policy was renewed on August $1,2023.$ $$3,000$ was left from last year.

Office supplies on hand were $$4,100$ and store supplies on hand were $$72,750.$

Depreciation on the building is calculated using straight line with a $50$ year life and $$50,000$ residual value.

Depreciation for the office equipment is calculated using double declining balance method, has

a five year life and it is expected to have a $$5,000$ residual value. Round to the nearest dollar.

Store equipment has an expected useful life of $4$ years, no residual value and is being depreciated using

the straight line method. It was purchased on June $1,2023.$

Payroll for June is going to be paid in early July. Salaries earned were $$39,000.$ The FICA rate is $7\mathrm{.}65\%$

and is paid by both the employee and the employer. Employee income taxes are withheld at a rate of $15\%.$

Answer & Explanation Solved by verified expert

See Answer