On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts.
Accounts Payable | $44,600 | |
Sales Taxes Payable | 8,700 | |
Unearned Service Revenue | 21,100 |
During January, the following selected transactions occurred.
Jan. 1 | Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. | |
5 | Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. | |
12 | Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) | |
14 | Paid state treasurer’s department for sales taxes collected in December 2021, $8,700. | |
20 | Sold 710 units of a new product on credit at $54 per unit, plus 5% sales tax. |
During January, the company’s employees earned wages of $60,000.
Withholdings related to these wages were $4,590 for Social Security
(FICA), $5,200 for federal income tax, and $1,560 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.
(a)
Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount, e.g. 5,275.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
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choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
enter an account title |
enter a debit amount |
enter a credit amount |
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Date | Account Titles and Explanation | Debit | Credit | |
Jan. 1 | Cash | 18000 | ||
Notes payable | 18000 | |||
Jan. 5 | Cash | 6360 | ||
Sales Revenue | 6000 | =6360/106*100 | ||
Sales Taxes Payable | 360 | |||
Jan. 12 | Unearned Service Revenue | 13600 | ||
Service Revenue | 13600 | |||
Jan. 14 | Sales Taxes Payable | 8700 | ||
Cash | 8700 | |||
Jan. 20 | Accounts Receivable | 40257 | ||
Sales Revenue | 38340 | =710*54 | ||
Sales Taxes Payable | 1917 | =38340*5% |
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