1. (JE and Taxes) Journalize the following Dunder Mifflin Transactions. A. Dunde
ID: 2457107 • Letter: 1
Question
1. (JE and Taxes)
Journalize the following Dunder Mifflin Transactions.
A. Dunder Mifflin bought printer paper (for resale) for $350.
B. DM purchased 3 more packages of sticky notes for $32.
C. Of Jim's $3,000 paper sales this period, 6% is taxed (sales tax, assume the rest is in cash.)
D. At the end of the month, Kevin is supposed to prepare payroll, do DM a favor and prep art the entry for him. Total wages were $54,000.
FIT: 10%
SIT: 3.07%
FICA: 6.2%
FUTA: 6%
SUTA: .07%
E. Michal Scott decides to offer gift cards (which is highly unadvised by David Wallace). To everyone’s surprise DM actually sold $32 worth of gift cards.
F. Dwight (owner of the building) sent Michal a utility bill for $325 for past months utilities
G. Jan Levinson (owner of the yellow pages) sends DM a check for $4,200 for paper products next month.
Explanation / Answer
Purchase (Printer paper) a/c Dr $350
cash $350
(Being purchase pf printer paper for resale)
Purchases (Sticky papers) a/c Dr $32
cash $32
(purchase of sticky papers)
Cash a/c Dr 3180
Sales a/c Dr 3000
Sales Tax liability 180
(being sale made and 6% charged on sales as sales tax)
Wages a/c Dr 54000
FIT 5400
SIT 165.78
FICA 3348
FUTA 3240
SUTA 37.8
Other Employees 41808.42
Cash a/c Dr $32
To sale of Gift card $32
(sale of gift card)
Utility a/c Dr 325
Dwight a/c 325
(Being utility bill received from the Dwight)
Bank a/c Dr $4200
Advance from Jan levinson a/c $4200
(Being advance received from customer)
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