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.
2007-11-26
13:55:44
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1 answers
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asked by
zack g
1
in
Other - Business & Finance