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The unadjusted trial balance of Pepe’s Pizza for fiscal 2012, includes the following items:
Debit
Credit
Inventory
$47,800
Wages payable
$ 800
Prepaid insurance
3,800
Taxes payable
0
Your analysis reveals additional information as follows:
The cost of inventory items on hand is $23,200.
Employee wages for the two weeks prior to year end were $7,800 and these will not be paid until the 2013 fiscal year (no other wages are owed).
The unexpired portion of the company’s insurance policy at year end was $4,600.
The company’s tax accountant reports that the company will owe $54,000 for income taxes for fiscal 2012.
Prepare journal entries for any required accounting adjustments.
cindy neuers regular hourly wage rate is 16 and she receives an hourly rate of 24 for work in excess of 40 hours.
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Calculate and write in general journal format any entries for accounts needing adjustment. Calculate and write in general journal format closing entries and post to "T" accounts. Complete an Income Statement and Balance Sheet for month end.
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