On January 1, 2012, the ledger of Fleming Company contained the following liability accounts.
Accounts Payable ........$52,000
Sales Taxes Payable ........8,200
Unearned Service Revenue .....11,000
During January, the following selected transactions occurred.
Jan. 1 Borrowed $18,000 from TriCounty Bank on a 3-month, 7%, $18,000 note.
5 Sold merchandise for cash totaling $18,480, which includes 5% sales taxes.
12 Provided services for customers who had made advance payments of $8,000. (Credit Service Revenue.)
14 Paid state revenue department for sales taxes collected in December 2011 ($8,200).
20 Sold 500 units of a new product on credit at $50 per unit, plus 5% sales tax.
During January, the company’s employees earned wages of $54,000. Withholdings related to these wages were $4,131 for Social Security (FICA), $3,900 for federal income tax, and $1,200 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.

Instructions
(a) Journalize the January transactions.
(b) Journalize the adjusting entries at January 31 for the outstanding notes payable and for wages expense and payroll tax expense.
(c) Prepare the current liabilities section of the balance sheet at January 31, 2012.
Assume no change in accounts payable.