Answer:
The Journal entries are as follows:
(i) On January 3,
Salaries expenses A/c Dr. $110,000
To salaries payable $110,000
(To record the salaries expenses)
(ii) On January 3,
Merchandise inventory A/c Dr. $55,692
Raw material inventory A/c Dr. $37,128
To accounts payable A/c $92,820
(To record the merchandise and raw material)
Shipping cost A/c Dr. $550
To bank A/c $550
(To record the shipping cost)
(iii) On January 3,
Accounts receivables A/c Dr. $22,000
To sales $22,000
(To record the sales on account)
cost of goods sold A/c Dr. $15,180
To Merchandise inventory $15,180
(To record the cost of goods sold)
(iv) Cash A/c Dr. $16,850
To accounts receivables $16,850
(To record the cash received)
