Jan. 21. Purchased a Naticoke Flyer for $5,000 on account from Jason Kraus Boats

Question

Jan. 21.  Purchased a Naticoke Flyer for $5,000 on account from Jason Kraus Boats Invoice no. 6463, terms 2%/10, net/30

Jan. 22. Sold merchandise on account to Catherine Gambino, Inc., $90,000 (Cost $55,000). Terms are 2%/10, net 30

Jan. 25. Issued 1,000 shares of common stock for $10,000 cash (Par value $2.00)

Jan 26.  Received payment from  Catherine Gambino, Inc. (Note terms.)

Jan 31.  The last week of payroll for January showed gross pay of $10,000.  Of this amount, FICA taxes of $700 and Federal Income Taxes Withheld of $2,000 were taken out of the wages of the employees. The net amount will be paid in February.

Explanation / Answer

jan.21 purchase Debit 5000

Jason Kraus Credit 5000

jan.22 Catherine Gambino Dr. 90000

sales Cr. 90000

Jan.25 Cash Dr. 10000

common stock Cr. 10000

Jan.26 Cash Dr. 88200

Catherine Gambino Cr. 88200

Jan.31 FICA Tax Dr. 700

Federal tax Dr. 2000

Cash cr. 2700

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