The $1,500 trash collection bill for the last month of the fiscal year normally arrives before the end of the month. However, the waste management company didn’t get its bills out on time, so the expense hasn’t been recorded. What adjusting entry should be made to correct this error?
In the hustle and bustle of the end-of-year accounting activities, the bookkeeper simply forgot to record the business’s social security taxes on its last payroll in the year. As you may know, a business employer pays social security taxes equal to the amount withheld from employees’ paychecks. The amount of employer’s social security tax for the last pay period is $29,600. What adjusting entry should be made to correct this error?