journalize the february transactions 578753

Feb.

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 8% 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 8% 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.