On January 1, 2011, the ledger of Payless Software Company of China contains the following liability accounts.
Accounts Payable............. Y42,500
Sales Taxes Payable............ 5.800
Unearned Service Revenue.......... 15,000
During January the following selected transactions occurred.
Jan 1 Borrowed Y30,000 in cash from Amsterdam Bank on a 4-month, 8%, Y30,000 note.
5. Sold merchandise for cash totaling Y10,400, which includes 4% sales taxes.
12 Provided services for customers who had made advance payments of Y9,000. (Credit Service Revenue.)
14 Paid government treasurer’s department for sales taxes collected in December 2010, Y5,800.
20 Sold 900 units of a new product on credit at Y52 per unit, plus 4% sales tax.
25 sold merchandise for cash totaling Y18,720, which includes 4% sales taxes.

Instructions
(a) Journalize the January transactions.
(b) Journalize the adjusting entries at January 31 for the outstanding notes payable.
(c) Prepare the current liabilities sections of the statement of financial position at January 31, 2011. Assume no change in accounts payable.