During January, the following selected transactions occurred.
Jan. 5 Sold merchandise for cas...
Business, 05.05.2020 23:09 urgurlkitty
During January, the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.)
During January, the company’s employees earned wages of $52,000. Withholdings related to these wages were $3,978 for Social Security (FICA), $5,686 for federal income tax, and $1,706 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expenses as of January 31.
Journalize the January transactions.
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