Prepare the Required Entries for the Following Transactions

question 116

Essay

Prepare the required entries for the following transactions:
(a)Austin Company pays daily wages of $645
(Monday-Friday). Paydays are every other Friday. Prepare the Monday, January 31 adjusting entry, assuming that the previous payday was Friday, January 21.
(b)Prepare the journal entry to record Austin Company's payroll on Friday, February 4.
(c)Annual depreciation expense on the company's fixed assets is $39,600. Prepare the adjusting entry to recognize depreciation for the month of January.
(d)The company's office supplies account shows a debit balance of $3,755. A count of office supplies on hand on January 31 shows $635 worth of supplies on hand. Prepare the January 31 adjusting entry for Office Supplies.

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Definitions:

Cooling-Off Rule

A regulation that gives consumers a set period of time to cancel a contract or purchase without penalty, intended to protect consumers from high-pressure sales tactics.

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate the individual and is intended to punish the wrongdoer.

Federal Statutory Regulation

Laws enacted by the United States Congress that are designed to regulate specific areas of American life.

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