On January 1, 2017, the ledger of Romada Company contained these liability accounts.

Accounts Payable	$42,500
Sales Taxes Payable	6,600
Unearned Service Revenue	19,000

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 $6,254, which includes 6% sales taxes.
	12	Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.)
	14	Paid state treasurer's department for sales taxes collected in December 2016, $6,600.
	20	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 Social Security (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.

Instructions

(a)

Journalize the January transactions.

(b)

Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense.

(c)

Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable.

Tot. current liabilities

$146,724