Question:
What are the journal entries for this question for both sp and corp?
Paid rent of $20,000 , payroll and payroll taxes of $65,000 ($40,000 to the sole proprietor), insurance of $3,000 and utilities of $6,000?
-Assume a corporate tax rate of 20% and a personal rate of 15% if he incorporates
-Assume a personal rate of 25% if he does not incorporate.