02 Feb Indiana Jones Company had the following selected t
Indiana Jones Company had the following selected transactions. 1 Signs a $50,000, 6-month, 9%-interest-bearing note payable to CitiBank and receives $50,000 in cash. 10 Cash register sales total $43,200, which includes an 8% sales tax. 28 The payroll for the month consists of salaries and wages of $50,000. All wages are subject to 7.65% FICA taxes. A total of $8,900 federal income taxes are withheld. The salaries are paid on March 1. 28 The company develops the following adjustment data.1. Interest expense of $375 has been incurred on the note.2. Employer payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and a 0.8% federal unemployment tax.3. Some sales were made under warranty. Of the units sold under warranty, 350 are expected to become defective. Repair costs are estimated to be $40 per unit.Instructions(a)Journalize the February transactions.(b)Journalize the adjusting entries at February 28.