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:

Inventory

Tangible property held for sale in the normal course of business or used in producing goods or services for sale.

Quality Of Income Ratio

A financial metric that assesses the proportion of income that comes from the company's main operating activities, indicating the sustainability of earnings.

Component Percentages

Express each item on a particular financial statement as a percentage of a single base amount.

Income Statement

A financial statement that shows a company's financial performance, including revenues, expenses, and profits over a specified period.