Question

Expenses incurred prior to September and paid during September Expenses incurred and paid in September Expenses incurred in September but not paid in September Expenses for supplies used and insurance (not included above) applicable to September 6.500 36,250 5,000 2.000 65. On January 1, Newman Company estimated its property tax to be $5,100 for the year. (a) How much should the company accrue each month for property taxes? (b) Calculate the balance in Property Tax Payable as of August 31. (c) Prepare the adjusting journal entry for September. 66. A business pays biweekly salaries of $20,000 every other Friday for a 10-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30 and the proper adjusting entry is journalized at the end of the fiscal period (December 31). Joumalize the entry for the payment of the payroll on Friday, January 10. Date Description Post. Ref. Debit Credit

Answer 1

Answer-65-

(a)-The company accrued each month for property taxes= $5,100/12= $425

(b)-The balance in Property Tax Payable as of August 31= $425*8= $3,400

(c)- Adjusting Journal Entry for September:-

Date	Description	Post Ref.	Debit	Credit
Sep.	Property Tax Expenses		425
	Property Tax Payable			425
	(To record property tax accrual for September)

66-The entry on Jan.10

Date	Description	Post Ref.	Debit	Credit
Sep.	Salaries Expenses		16,000
	Salaries Payable		4,000
	Cash			20,000

Working:-

Salaries Payable= 20,000*2/10= $4,000