The Following Transactions Have Been Journalized and Posted to the Proper

question 15

Essay

The following transactions have been journalized and posted to the proper accounts.Prepare a trial balance at the end of the first month using the following details:
a)Received $15,000 cash and issued common stock.
b)Paid the first month's rent with $800 cash.
c)Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d)Purchased office supplies for $200 cash.The supplies remain at the end of the month.
e)Billed clients for a total of $7,000 for design services rendered.
f)Received $1,000 cash from clients for services rendered above.

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, a payroll tax deducted from employees' wages for Social Security and Medicare benefits.

Employer

An individual or business entity that hires and pays wages or salaries to one or more employees in exchange for their work.

Paychecks

Documents issued by an employer to an employee to pay for services rendered, representing salary or wages.

Withheld FICA Tax

Taxes taken out of an employee's paycheck for Social Security and Medicare.