60.1K

Verified Solution

Link Copied!

This company was incorporated on Dec 15th, 2021 with a $10,000 investment from its owner. Inventory was purchased at the end of December and opened for business on January 1st, 2022. Below is the trial balance of the company on December 31st, 2021 Flathead River Company Trial Balance 31-Dec-21 Debit Account Cash Inventory Accounts Payable Common Stock A) Journalize the following transactions (This company does monthly financial statements) B) What is the balance of the Accounts Payable Account C) What is the total liability of taxes due to government taxing agencies. (Both federal and state) 8,000 9,625 1) The company borrowed $45656 on January 1, 2022 at an interest rate of 3.23% APR. The note has quarterly, first interest payment due on March 30th 2022, interest payments and is due in full on December 31, 2022. 17,625 2) The company receives an advanced payment of $3824 from a customer for inventory to be shipped in the next month. 3) The company paid $4193.75 against the accounts payable from the December inventory purchases. 4) The company purchases an additional $45095 of inventory. Paying $10,000 in cash and the remainder on credit. Make the following assumptions: Social Security Medicare Credit 5) The company purchased an optical sorting machine to increase the efficiency of the sorting of inventory. The machine cost, and was paid for in cash, $9378 and was placed in operation in January 15th. 7,625 10,000 17,625 6) During the month the company generated $74201 of sales. All sales on credit. The cost of goods sold totaled $31981 8) Sales tax in the state is 1.5%. 7) On January 31st the company accrued payroll that will be paid on the first Monday in February. The gross payroll was $20086 6.20% 1.45% CHECK FIGURE Total Current Liabilities None of the employees reached the cap on any of the taxes. Don't forget the journal for the employer portion of taxes. $ 112,811.91 Federal Income Tax State Income Tax 9) The company estimates that 1% of sales will be returned defective within the next 6 months. 5% 2% FUTA SUTA 0.60% 5.40%

Tha compdry wat incorporated on Dec 15th,202t with a $10000 incertmient frem its ownex: imventory wai purchaned at the end of December and operied for butinest on lanuary 1st, 2022. Aelow is the trial balance of the companr on December Mlst, 2021 A) Journalize the followine transactiont (This companr does monthly finandat stalements) D) What is the balance of the Accounts Parable Accosant 11 The company borrowd S 45656 en lahuary 1,2022 at an imerent rate of 323 APh: 2) 3) 4) (5) The es mpamy purchased as optical sortins machine to increase the efficiency of the sortine ef imertary The inachice cost, and was paid for in cash, 5937 shd was placed in operation in lanuary 151 . 6) During the month the company cenerated 576201 of sales. All salse on credit The cout of eoods sold totaled S319at 7) ile crots parrell was $20085 None of the emplorees teached the cap on any of the taces. Don torget the journal for the employer portion of taxes. (i) Sales tar in the state is isk. 9 The compary es bmates that 13 of sules will ber retamed defectove withis the next fi months CirCK FGGURE Tetal Current Liabilties 5 127831.91

Answer & Explanation Solved by verified expert

See Answer