On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $52,420 Sales Taxes Payable 7,150 Unearned Service Revenue 16,740 During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $16,740, which includes 8% sales taxes.

Jan 12 Performed services for customers who had made advance payments of $11,320. (Credit Service Revenue.)

Jan 14 Paid state revenue department for sales taxes collected in December 2014 ($7,150).

Jan 20 Sold 950 units of a new product on credit at $50 per unit, plus 8% sales tax.

Jan 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note.

Jan 25 Sold merchandise for cash totaling $7,560, which includes 8% sales taxes.

1) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.)

2) Prepare the current liabilities section of the balance sheet at January 31, 2015. Assume no change in accounts payable.

Date Account Titles and Explanation Debit Credit