Question #1. complete the journal entries:
Use the information below to complete the Payroll, Sales TaxLiability, and General Journal tabs.
On September 1, Xavier purchased $10,000 worth of equipment on abank line of credit. He paid down that line of credit by $6,800 onSeptember 28.
On September 30, the business ran payroll for their employee,Eddie. Crankshaft customs matches the FICA contribution thatis withdrawn from Eddie’s gross earnings.
On September 10, there was $1,900 in revenue from mobiledetailing paid in cash.
On September 22, four customers paid cash for a total of $24,000in custom work. The Cost of Sales for this revenue was $8,000. Notethat the company does not hold inventory related to customwork.
On September 24, Maria withdrew $9,500 cash as an owner’sdraw.
On September 9, Crankshaft Customs invoiced a car rental company$900 for work performed on their classic fleet.
On September 15, Crankshaft Customs remitted the balance oftheir Quarter 3 sales tax liability.
On September 18, Crankshaft Customs paid $1,085 for theirvehicle loan; $1,000 toward principal and $85 in interestexpense.
On September 25, they paid $1,000 toward the Note Payableaccount.
Crankshaft Customs General Journal Date Description Sept. 1 Purchase Equiptment Sept. 4 Inventory purchased on visa Inventory Visa Sept. 4 Paid monthly insurance premium Insurance expense cash Sept 6 Purchased fuel for vehicles Fuel expense Visa Sept. 7 Purchased supplies on vendor credit Supplies Vendor line of credit Sept. 9 Sept. 10. Mobile detailing revenue Cash Revenue Debit (Dr) 400.00 250.00 350.00 800.00 1,900.00 Credit (Cr) 400.00 250.00 350.00 800.00 1,900.00
Sept. 14 Sales of prepaid detailing subscriptions Cash prepaid subscriptions Sept. 14 Sept. 15 Sept. 18 Monthly payment to vehicle loan Vehicle loan payable Interest expense Cash Sept 22 Sept. 24 Maria withdraws funds from the business Owner's draw Cash Sept. 25 Subscription revenue realized (100 customers x $30) Prepaid subscriptions 9,000.00 1,000.00 85.00 9,500.00 3,000.00 9,000.00 1,085.00 9,500.00
Sept. 25 Subscription revenue realized (100 customers x $30) Prepaid subscriptions Revenue Sept. 25 Monthly payment made to Notes Payable Sept 28 Sept. 30 Payroll: Eddie's wages Payroll expense FICA Expense Cash FICA Payable 3,000.00 3,000.00
Question #1. complete the journal entries: Use the information below to complete the Payroll, Sales Tax Liability, and G
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