Accounting Question?
On Jan.21.2007 these Liability accounts are presented in the ledger: Accounts payable 42500 Sales Tax payable 6600 Unearned service revenue 19000 During January the following occured: Jan1. Borrowed 12k in cash from Midland bank on 4 month, 8%, 12000 note jan5. Sold merchandise for cash totalin 6,510, which inculdes 5 % sales taxes. Jan12. provided services for customers who had made advance payments of 10,000 (credit service revenue) jan14. paid state treasurers department for sales tax collected december of 2006, 6600 jan.20 sold 500 units of new product on credit at 48 per unit, plus 5% sales tax. Note* during jan, company employees earned wages of 60000. withholdings inculded were 4590 for Social Sec., 5000 for federal income tax and 1500 for state income tax. 1. journalize january entries 2. " " adjusting entries at jan.31 for outstanding note payable and for wage expense and payroll tax expense 3. prepare current liablilites section of balance sheet.
Public Comments
- 1. journalize january entries Jan1. Borrowed 12k in cash from Midland bank on 4 month, 8%, 12000 note Dr Cash 12,000 Cr Note payable 12,000 jan5. Sold merchandise for cash totalin 6,510, which inculdes 5 % sales taxes Dr Cash 6,510 Cr Sales 6,200 Cr Sales tax payable 310 Jan12. provided services for customers who had made advance payments of 10,000 (credit service revenue) Dr Unearned service revenue 10,000 Cr Service revenue 10,000 jan14. paid state treasurers department for sales tax collected december of 2006, 6600 Dr Sales tax payable 6,600 Cr Cash 6,600 jan.20 sold 500 units of new product on credit at 48 per unit, plus 5% sales tax Dr A/cs receivable 25,200 Cr Sales 24,000 Cr Sales tax payable 1,200 2. " " adjusting entries at jan.31 for outstanding note payable and for wage expense and payroll tax expense Dr Interest expense 80 Cr Interest payable 80 Dr Wages expense 60,000 Cr FICA tax payable 4,590 Cr Federal income tax withholdings payable 5,000 Cr State income tax withholdings payable 1,500 Cr Wages payable 48,910 Dr FICA expense 4,590 (matched) Cr FICA tax payable 4,590 3. prepare current liablilites section of balance sheet Accounts payable 42,500 Sales Tax payable 1,510 Unearned service revenue 9,000 Wages payable 48,910 FICA tax payable 9,180 Federal income tax withholdings payable 5,000 State income tax withholdings payable 1,500 Note payable 12,000 Interest payable 80