Exercise 3 On January 1, 2017, the ledger of Edmiston Software Company 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 $30,000 in cash from Amsterdam Bank on a 4-month, 8%, $30,000 note. 5 Sold merchandise for cash totalling $10,400, which includes 4% 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 2016, $5,800. 25 Sold merchandise for cash totalling $18,720, which includes 4% sales taxes. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for the outstanding notes payable