Answer and Explanation:
The Journal entry is shown below:-
1. Salaries & Wages Expenses Dr, $3,540
To Salaries & Wages Payable $3,540
(Being salaries and expenses is recorded)
2. Salaries & Wages Expenses Dr, $28,800
To Salaries & Wages Payable $28,800
(Being salaries and expenses is recorded)
3. Prepaid Insurance Dr, $2,250
To Insurance Expense $2,250
($2,700 × 10 months ÷ 12)
(Being prepaid insurance is recorded)
4. Sales Revenue Dr, $109,080
($1,927,080 × 6 ÷ (100 + 6))
To Sales Tax Payable $109,080
(Being Sales revenue is recorded)
5. Sales Tax Payable Dr, $93,780
To Sales Tax Expense $93,780
(Being sales tax expenses is recorded)
