Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-/1 On January 1, 2022, the ledger of Crane Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $44,900 9,000 21.400

image text in transcribed
image text in transcribed
image text in transcribed
-/1 On January 1, 2022, the ledger of Crane Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $44,900 9,000 21.400 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. Sold merchandise for cash totaling 55,406, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13.600. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021. $9.000 Sold 740 units of a new product on credit at $49 per unit, plus 5% sales tax 5 14 20 During January, the company's employees earned wages of $54,000. Withholdings related to these wages were 54.131 for Social Security (FICA), 55,379 for federal income tax and $1.624 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 expenses of January 31. iment playet/index.html?lanchid-699952-671-4-320-72150estion/ HW Question 2 of 12 -/1 Journalize the January transactions. (Credits are automatically indented when amount is entered. Do not indent manually Record journal entries in the order presented in the problem. Round answers to rest whole dollar amount 5,275) Date Account Titles and Explanation Jan 1 Debit Credit Jans Jan 12 Jan 14 Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account tities are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Jan. 31 (To record the interest on outstanding notes payable.) Jan. 31 (To record payroll and withholding taxes Jan 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Group

Authors: Ilse Lubbe, Shelley Herbert, Goolam Modack

1st Edition

0195998634, 9780195998634

More Books

Students also viewed these Accounting questions