On January 1, 2017, the ledger of Zaur Ltd. contains the following liability accounts.

Accounts Payable ...................................... ¥42,500

Sales Taxes Payable ..................................... 5,800

Unearned Service Revenue ........................ 15,000

During January, the following selected transactions occurred.

Jan. 1 Borrowed ¥15,000 in cash from Platteville Bank on a 4-month, 6%, ¥15,000 note.

5 Sold merchandise for cash totaling ¥9,828, which includes 8% sales taxes.

12 Performed services for customers who had made advance payments of ¥9,400. (Credit Service Revenue.)

14 Paid government treasurer's department for sales taxes collected in December 2016, ¥5,800.

20 Sold 700 units of a new product on credit at ¥44 per unit, plus 8% sales tax.

25 Sold merchandise for cash totaling ¥16,308, which includes 8% 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 section of the statement of financial position at January 31, 2017. Assume no change in accounts payable.