Charger Inc. had the following items that require adjusting entries at the end of the...
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Accounting
Charger Inc. had the following items that require adjusting entries at the end of the year.
a.
Charger pays its employees $3,000 every Friday for a 5-day work week. This year December 31 falls on a Wednesday.
b.
Charger earned income of $760,000 for the year for tax purposes. Its effective tax rate is 35%. These taxes must be paid by April 15 of next year.
c.
Charger borrowed $320,000 with a note payable dated August 1. This note specifies 6%. The interest and principal are due on March 31 of the following year.
d.
Chargers president earns a bonus equal to 10% of income in excess of $620,000. Income for the year was $760,000. This bonus is paid in May of the following year and any expense is charged to wages expense.
Required:
Prepare the adjusting journal entries to record these transactions at the end of the current year.
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