On January 1, 2014, the ledger of Zaur Company contains the following liability Prepare current liability accounts. entries, adjusting entries, and current liabilities section. Accounts Payable $42,500 Sales Taxes Payable 5,800 (LO 1, 2, 3)

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 $9,434, which includes 6% sales taxes.

12 Provided services for customers who had made advance payments of $9,000.

(Credit Service Revenue.)

14 Paid state treasurer’s department for sales taxes collected in December 2013, $5,800.

20 Sold 700 units of a new product on credit at $44 per unit, plus 6% sales tax.

25 Sold merchandise for cash totaling $16,536, which includes 6% 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 balance sheet at January 31, 2014.Assume =

(c) Current liability total no change in accounts payable. $66,893