Answer:
Journal Entries:
a) Debit Raw materials inventory $17,700
Credit Accounts payable $17,700
To record the purchase of raw materials on account.
b) Debit Payroll expense $39,200
Credit Wages payable $29,400
Credit Payroll taxes payable $9,800
To record payroll expense.
c) Debit Factory utilities expenses $3,600
Credit Utilities payable $3,600
To accrue factory utilities expenses.
Debit Factory property taxes of $2,510
Credit Cash $2,510
To record payment of property taxes.
Debit Depreciation Expense, Factory building $9,600
Credit Accumulated Depreciation, Factory building $9,600
To record depreciation expense.
Explanation:
1) Data and Analysis:
a) Raw materials inventory $17,700 Accounts payable $17,700
b) Payroll expense $39,200 Wages payable $29,400 Payroll taxes payable $9,800
c) Factory utilities $3,600 Utilities payable $3,600
Factory property taxes of $2,510 Cash $2,510
Depreciation Expense, Factory building $9,600 Accumulated Depreciation, Factory building $9,600
