[Nikki_24]

I have been working on this assignment for a week and I just can not seem to get this particular questions. I've read and reread the chapters. I am still having problems. Any help would be greatly appreciated.


Make a payment to the bank on the loan of $1,000 of which $900 is principal and $100 is interest.



A payroll check is issued to an employee. The breakdown is as follows:

Gross pay: 500
Federal withholding: 100
Social security/ medicare: 40
State withholding: 50

Please compute the check to be written to the employee and make the bookkeeping journal entry for the transaction.



Record use of $500 of last year’s insurance bill that was recorded as an asset.

Please list what may be wrong (if anything) with this trial balance:

Acct. debit credit

Cash-checking- 55,000
Investments 10,000
Prepaid ins. 400
A/R 5,000
A/P 50
Loan Payable 2,000
Net Assets-unresticted 4,000
Grant rev 5,000
Interest income 500
Office exp 500
Salaries 5,000
Fed. Inc. tax withholding 1,000


Total 23,950 64,500