Basic managerial accoutning

* Question 1 On January 1, 2017, Cullumber Company's accounting records contained these liability accounts. Accounts Payable $45,000 Sales Taxes Payable 7,850 Unearned Service Revenue 21,500 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. 5 Sold merchandise for cash totaling $5,936, which includes 6% sales taxes 12 Performed services for customers who had made advance payments of $12,500. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2016, $7,850. 20 Sold 750 units of a new product on credit at $54 per unit, plus 6% sales tax, During January, the company's employees earned wages of $79,600. Withholdings related to these wages were $6,089 for Social Security (FICA), $5,686 for federal income tax, and $1,706 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. Wages or payroll tax expense have not been recorded as of January 31.Prepare a tabular summary to record the January transactions and the adjustments on January 31 for the outstanding note payable and the salaries and wages expense and payroll tax expense. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign ( or parentheses) in fr the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to 0 decimal places, e.g. 5,275.) Assets Liabilities Stockholders' Equity Paid-in- Retained Earnings Capital Salaries & Unearned Sales Taxes FICA Taxes Fed. Inc. + 3 St. Inc. Taxes State Unemp. + Common Cash + Accts. Rec. = Notes Pay. Acct. Pay. Wages Pay. Serv. Rev. Pay. Interest Pay. Pay. Taxes Pay. Pay. Taxes Pay. Stock Revenue Expense Dividend Bal. Jan. 1 18000 18000 5600 sales revenue Jan. 5 5936 336 12500 12500 service revenue Jan. 12 Jan. 14 (7850) (7850 40500 sales revenue Jan. 20 42930 2430 Adi. 75 terest expense Jan. 31 75 66119 (79600) alaries & wag Jan. 31 Jan. 31 (6089) (5686) (1706) Payroll tax expense Bal. 16086 42930 18000 66119 12500 (5084) 75 (6089) (5686) (1706) 58600 79675Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable. ( Round answers to 0 decimal places, e.g. 5,275.) CULLUMBER COMPANY Balance Sheet (Partial) For the Month Ended Jan Current Liabilities Account Payable 4500 Tax Payable 2766 Unearned Service Revenue