Accounting Question?

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.

Answer 1

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