Help with end of year adjusting entries?

I'm having trouble with these following AJE's and I'm not sure if my answers are correct.

(CMC uses a perpetual inventory system)

1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710.

2. You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost of the product was $68,742.

1 Answer

  • Don G
    Lv 7
    9 months ago
    Favorite Answer

    (1) DR Wages 33,875 DR Payroll tax 2,710 CR Accrued Wages 33,875 CR Accrued P/R Tax 2,710

    (2) DR Sales 128,600 DR Inventory 68,742 CR Accts Recv 128,600 CR Cost of Goods Sold 68,742

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