On January 1, 2020, the ledger of Sheffield Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $57,000 7,800 16,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 14 20 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2019 ($7,800). 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 $27,000 from Girard Bank on a 3-month, 8%, $27,000 note. Sold merchandise for cash totaling $9,936, which includes 8% sales taxes. 21 25 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 Jan. 5 Cash 20520 Sales Revenue 19000 Sales Taxes Payable 1520 Jan. 12 Unearned Service Revenue 10500 Service Revenue 10500 Jan. 14 Sales Taxes Payable 7800 Cash 7800 Jan. 20 Accounts Receivable 48600 Sales Revenue 45000 Sales Taxes Payable 3600 Jan. 21 Cash 27000 Notes Payable 27000 Jan. 25 Cash 9936 Sales Revenue 9200 Sales Taxes Payable 736 (b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation Debit Credit 1. 2. e Textbook and Media