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On January 1, 2020, the ledger of Lily Company contains the following liability accounts. $54,500 Accounts Payable Sales Taxes Payable Unearned Service Revenue 7,100 16,500

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On January 1, 2020, the ledger of Lily Company contains the following liability accounts. $54,500 Accounts Payable Sales Taxes Payable Unearned Service Revenue 7,100 16,500 During January, the following selected transactions occurred. Jan Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 5 12 14 20 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2019 ($7.100). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty Borrowed $24.750 from Girard Bank on a 3-month, 8%, $24.750 note. 21 25 Sold merchandise for cash totaling $12,096, which includes 8% sales taxes. -/1 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.) Date Account Titles and Explanation Debit Credit

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