ASSIGNMENT 3 EXAM WITH QUESTIONS AND ANSWERS (100% SOLVED)
A. On January 1, 2022, the ledger of Cullumber Company contained these liability accounts.
Accounts Payable $43,900
Sales Taxes Payable 8,000
Unearned Service Revenue 20,400
During January, the following selected transactions occurred.
Jan. 1Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note.
5. Sold merchandise for cash totaling $6,572, which includes 6% sales taxes.
12. Performed services for customers who had made advance payments of $12,000. (Credit
Service Revenue.)
14. Paid state treasurer's department for sales taxes collected in December 2021, $8,000.
20. Sold 640 units of a new product on credit at $48 per unit, plus 5% sales tax.
During January, the company's employees earned wages of $94,000. Withholdings related to
these wages were $7,191 for Social Security (FICA), $5,486 for federal income tax, and $1,646
for state income tax. The company owed no money related to these earn - ✔✔✔–1. Debit: Cash
for 18,000
Credit: Notes Payable for 18,000
, ASSIGNMENT 3 EXAM WITH QUESTIONS AND ANSWERS (100% SOLVED)
5. Debit: Cash for 6,572
Credit: Sales for 6,200 (6,572/1.06)
Credit: Sales Taxes Payable for 372 (6,572-6,200)
12. Debit: Unearned Service Revenue for 12,000
Credit: Service Revenue for 12,000
14. Debit: Sales Taxes Payable for 8,000
Credit: Cash for 8,000
20. Debit: Accounts Receivable for 32,256
Credit: Sales for 30,720 (640 x 48)
Credit: Sales Taxes Payable for 1,536 (30,720 x .05)
B. Journalize the adjusting entries at January 31 for the outstanding note payable and for
salaries and wages expense and payroll tax expense. - ✔✔✔–(To record the interest on
outstanding notes payable)
Debit: Interest Expense for 75
Credit: Interest Payable for 75
(To record payroll and withholding taxes)
Debit: Salaries and Wages Expense for 94,000
Credit: FICA Taxes for 7,191
Federal Income Taxes Payable for 5,486
State Income Taxes Payable for 1,646
Salaries and Wages Payable for 79,677
A. On January 1, 2022, the ledger of Cullumber Company contained these liability accounts.
Accounts Payable $43,900
Sales Taxes Payable 8,000
Unearned Service Revenue 20,400
During January, the following selected transactions occurred.
Jan. 1Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note.
5. Sold merchandise for cash totaling $6,572, which includes 6% sales taxes.
12. Performed services for customers who had made advance payments of $12,000. (Credit
Service Revenue.)
14. Paid state treasurer's department for sales taxes collected in December 2021, $8,000.
20. Sold 640 units of a new product on credit at $48 per unit, plus 5% sales tax.
During January, the company's employees earned wages of $94,000. Withholdings related to
these wages were $7,191 for Social Security (FICA), $5,486 for federal income tax, and $1,646
for state income tax. The company owed no money related to these earn - ✔✔✔–1. Debit: Cash
for 18,000
Credit: Notes Payable for 18,000
, ASSIGNMENT 3 EXAM WITH QUESTIONS AND ANSWERS (100% SOLVED)
5. Debit: Cash for 6,572
Credit: Sales for 6,200 (6,572/1.06)
Credit: Sales Taxes Payable for 372 (6,572-6,200)
12. Debit: Unearned Service Revenue for 12,000
Credit: Service Revenue for 12,000
14. Debit: Sales Taxes Payable for 8,000
Credit: Cash for 8,000
20. Debit: Accounts Receivable for 32,256
Credit: Sales for 30,720 (640 x 48)
Credit: Sales Taxes Payable for 1,536 (30,720 x .05)
B. Journalize the adjusting entries at January 31 for the outstanding note payable and for
salaries and wages expense and payroll tax expense. - ✔✔✔–(To record the interest on
outstanding notes payable)
Debit: Interest Expense for 75
Credit: Interest Payable for 75
(To record payroll and withholding taxes)
Debit: Salaries and Wages Expense for 94,000
Credit: FICA Taxes for 7,191
Federal Income Taxes Payable for 5,486
State Income Taxes Payable for 1,646
Salaries and Wages Payable for 79,677
