Accounts payable $45,910
Sales Taxes Payable 6,855
Unearned service revenue 21,120
During January the following selected transactions occurred.
Jan. 1 Borrowed $18,300 in cash from Midland Bank on a 4-month 8%, $18,300 note.
Jan. 5 Sold merchandise for cash totaling $7,119, which includes 5% sales taxes.
Jan. 12 Provided services for customers who had made advance payment of $13,614. (Credit Service Revenue.)
Jan. 14 Paid state treasurer's department for sales taxes collected in December 2009, $6,636.
Jan. 20 Sold 550 units of a new product on credit at $54 per unit, plus 5% sales tax.
During January the company's employees earned wages of $75,220. Withholdings related to these wages were $5,754 for Social Security (FICA), $5,378 for federal income tax, and $1,504 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.
B) Journalize the adjusting entries at January 31 for the outstanding notes payable and for wages expense and payroll tax expense. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
c)Complete the current liabilities section of the balance sheet at January 31, 2010. Assume no change in Accounts Payable. (List notes payable then accounts payable with the rest of the accounts from largest to smallest amounts, e.g. 10, 5, 2.)