On January 1, 2020, the ledger of Vaughn Company contains the following liability accounts.

Accounts Payable$57,000

Sales Taxes Payable8,400

Unearned Service Revenue16,500

During January, the following selected transactions occurred.

Jan. 5Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.

12Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.)

14Paid state revenue department for sales taxes collected in December 2019 ($8,400).

20Sold 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.

21Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note.

25Sold merchandise for cash totaling $9,288, which includes 8% sales taxes.

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. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

SHOW LIST OF ACCOUNTS

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.

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

2.

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

SHOW LIST OF ACCOUNTS

Prepare the current liabilities section of the balance sheet at January 31, 2020. Assume no change in accounts payable. Vaughn Company Balance Sheet (Partial)

January 31, 2020For the Quarter Ended January 31, 2020For the Year Ended January 31, 2020

Current AssetsCurrent LiabilitiesTotal Current AssetsTotal Current LiabilitiesLong-term InvestmentsShort-Term InvestmentsIntangible AssetsTotal Intangible AssetsOwner's EquityTotal Owner's EquityProperty, Plant and EquipmentTotal Property, Plant and EquipmentTotal AssetsTotal Liabilities and Owner's Equity

$

Total Owner's Equity Current Assets Total Current Assets Property, Plant and Equipment Intangible Assets Total Current Liabilities Total Property, Plant and Equipment Short-Term Investments Owner's Equity Total Intangible Assets Long-term Investments Total Assets Total Liabilities and Owner's Equity Current Liabilities

$