2345 6 On January 1, the ledger of Romada Company contained these liability accounts. Accounts Payable $42,500 Sales Taxes Payable Unearned Service Revenue $6,600 $19,000 1-Jan Cash $18,000 Notes Payable $18,000 (To record cash borrowed in exchange for a note) $6,254 Sales Revenue $5,900 Sales Taxes Payable $354 During January, the following selected transactions occurred. Jan. 1 7 8 9 Jan. 5 10 Jan. 12 11 12 13 14 15 16 17 19 2222 20 21 Jan. 14 Jan. 20 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. Interest will be paid at maturity. Sold merchandise for cash totaling $6,254, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,000. Paid state treasurer's department for sales taxes collected in December, $6,600. Sold 500 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company's employees earned wages of $70,000. Withholdings related to these wages were $5,355 for FICA, $5,000 for federal income tax, and $1,500 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. a) Journalize the January transactions from 1/1 to 1/20. b) Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. Hint: there are 2 Payroll Tax Expense entries. 5-Jan Cash (To record merchandise sold for cash)