Wages of 2650 accrued at the end of the prior fiscal period


Question - A company incurred the following transactions:

1. Wages of $2,650 accrued at the end of the prior fiscal period were paid this fiscal period.

2. Real estate taxes of $7,100 applicable to the current period have not been accrued.

3. Interest on bonds payable has not been accrued for the current month. The company has outstanding $840,000 of 5.5% bonds.

4. The premium related to the bonds in part c has not been amortized for the current month. The current-month amortization is $220.

5. Based on past experience with its warranty program, the estimated warranty expense for the current period should be 0.3% of sales of $940,000.

6. Analysis of the company's income taxes indicates that taxes currently payable are $43,000 and that the deferred tax liability should be increased by $17,000.

Record the journal entries to show each transaction/adjustment.

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Accounting Basics: Wages of 2650 accrued at the end of the prior fiscal period
Reference No:- TGS02931992

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