(b) The company pays payroll obligations on February 4th. Record the payroll obl
ID: 2372383 • Letter: #
Question
(b) The company pays payroll obligations on February 4th. Record the payroll obligations of February and write the journal entry to pay payroll on February 4thWages expense XXXX
Wages Payable XXXX
(c) The company has fixed assets that scheduled depreciation is $39,600 annually. Write the adjusting entry to recognize the monthly depreciation for January
(d)
The company’s Office Supplies account shows a debit balance of $3,755. An inspection of the office supplies locker on January 31st reveals only $635 worth of supplies. Write the adjusting entry for Office Supplies
2. The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to perform the closing entries for Ladonna Douglas Company.(26 puntos)
Cash $34,750.00
Accounts Receivable 9,750.00
Office Supplies 2,525.00
Store Supplies 4,785.00
Machinery 10,750.00
Accumulated Depreciation 2,150.00
Accounts Payable 14,300.00
Notes Payable 11,500.00
Ladonna Douglas, Capital 53,725.00
Ladonna Douglas, Drawing 13,250.00
Service Revenue 41,500.00
Wages Expense 37,425.00
Rent Expense 3,000.00
Advertising Expense 2,750.00
Office Supplies Expense 1,465.00
Store Supplies Expense 2,150.00
Depreciation Expense 575.00 ________
$123,175.00 $123,175.00
Explanation / Answer
1. You have to determine the cost that has not hit the P&L yet, so I assume that is 5 work days, so 5 x 645 is 3225. So you'd do Payroll Exp 3225 Accrued Expenses(payroll) 3225 Then reverse than on Feb 1st. 2. Just record payroll like normal if you do the 2 entries above . Payroll Expense xxxxx Cash xxxxxx 3.Divide the 39600 by 12 for your monthly depreciation amount. Depreciation Expense xxxxx Accumulated Depreciation xxxxx 4.You just take the difference of the 2 numbers and write off the difference. Supplies expense xxxxx Office Supplies xxxxx Most likely you should just expense supplies as you get them and not put them on the balance sheet though.
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