Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Needing help correcting the entries for January 20. On January 1, 2022, the ledger of Crane Company contained these liability accounts. Accounts Payable Sales Taxes
Needing help correcting the entries for January 20.
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 5 12 14 20 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18.000 note. Sold merchandise for cash totaling $5,406, which includes 6% sales taxes. 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. During January, the company's employees earned wages of $54,000. Withholdings related to these wages were $4,131 for Social Security (FICA). $5,379 for federal income tax, and $1,614 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. Your answer is partially correct. Journalize the January transactions. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount eg. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 18000 Notes Payable 18000 Jans Cash 5406 Sales Revenue 5100 Sales Taxes Payable 306 Jan. 12 13600 Unearned Service Revenue > Service Revenue 13600 lan. 14 Sales Taxes Payable 9000 Cash 9000 Jan. 20 Accounts Receivable 38435 Sales Revenue 36260 Sales Taxes Payable 2175Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started