The Archdale Company is a retail company that began operations on October 1, 2018​, when it incorporated in the state of North Carolina. The Archdale Company is authorized to issue 150,000 shares of​ $1 par value common stock and 40 ,000 shares of 2​%, $ 70 par value preferred stock. The company sells a product that includes a​ one-year warranty and records estimated warranty payable each month. Customers are charged a 5​% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month.

The Tusquittee Company
Chart of Accounts

Dividends Payable—Common
Merchandise Inventory
Notes Payable
Mortgages Payable
Common Stock—$1 Par Value
Store Fixtures
Paid-in Capital in Excess of Par—Common
Accumulated Depreciation
Paid-in Capital from Treasury Stock Transactions
Accounts Payable
Retained Earnings
Employee Income Taxes Payable
Treasury Stock—Common
FICA—OASDI Taxes Payable
Cash Dividends
FICA—Medicare Taxes Payable
Sales Revenue
Employee Health Insurance Payable
Cost of Goods Sold
Federal Unemployment Taxes Payable
Salaries Expense
State Unemployment Taxes Payable
Payroll Tax Expense
Income Tax Payable
Utilities Expense
Sales Tax Payable
Depreciation Expense
Estimated Warranty Payable
Warranty Expense
Interest Payable
Income Tax Expense
Interest Expense

Leave a Reply