Prepare the journal entry to record the purchase

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Question:

QUESTION 1.

Jones company purchases land and building for $1,000,000

Fair market value are : Landing $300,000 and Building $900,000

Prepare the journal entry to record the purchase.

Question 2.

Payroll for ABE co. is as follows:

Gross salaries $100,000

FICA $6,200

Medicare $1,450

Federal Taxes $20,000

MA Taxes $5,000

Federal unemployment 1%

MA unemployment 7%

Prepare journal entries to record payroll and payroll taxes.

Reference no: EM132203859

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