PART II RECORD THE FOLLOWING TRANSACTIONS IN THE GENERAL JOURNAL:1-On May 15, 2007, Matrix, Inc sold building materials for $ 10,800that are subject to a 9% sales taK. 2-On May 16, 2007, Matrix, Increceived $ 9,500 in advance for service to take place on July 12.2007. 3-On May 30, 2007, Matrix, Inc. asked Carter, Co. to accept a60-day, 15% note to replace its eisting $ 10.s00 account payable toCarter 4-On May 30, 2007, Matrix, Inc issued a S155,000, 4year, 12%note at face value to Forest Hills Bank and received $ 155,000cash. The note requires annual interest payments each December 31.5-On July 30, 2007, Matrix, Inc. pays the note plus interest toCarter. (May 30, 2007) 6-On AugustI, Matris. Ine issues bonds, thatpay interest semiannually on February 27 and August 31. The bondshave a $ 138,000 par value, the annual contract rate is 12%, andthe bonds mature in 15 years. Market rate at the date of issuanceis 12%. 7- On August 31, 2007, payment of bonds interest expense,12%. (August 1,2007) 8-On October 30, 2007, Matrix, Inc pays thenote plus interest to Carter (August 1,2007) 9-On October 31, 2007,Matrix Inc borrows $ 75,000 from American Bank. The note 2007).bears interest at 9% per year. Principal and interest are due in 30days (November A. 10-On October 31, 2007, Matrix weekly payroll ofS35,000 entirely subject t and Medicare (7.65%), federal (0.8%) andstate (4) unemployment taxes, with income tax withholding of $1,420 and union dues of $ 99 deducted. Journal entry to recordsalaries and wages paid 12- On October 31, 2007, Matrix weeklypayroll of $ 35,000 entirely subject to FLCA. and Medicare (7.65%),federal (0.8 %) and state (4) unemplovment taxes, with income taxwithholding of $ 1,320 and union dues of $ 88 deducted. Journalentry to record employer payroll taxes. 13- On November 30, 2007,payment of notes principal and interest expense. (On October 31,2007) 14- Prepare Matrik journal entries to record the December 31accrued notes interest (May 30, 2007)
