On January 1, 2020, the ledger of Waterway Company contains the following liability accounts Accounts Payable Sales Taxes Payable Unearned Service Revenue $54.000 7.200 16,500 During January, the following selected transactions occurred. Sold merchandise for cash totaling $20,520, which includes B% sales taxes. Jan. 5 12 14 20 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue Paid state revenue department for sales taxes collected in December 2019 ($7.200). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a year warranty Borrowed $31,500 from Girard Bank on a 3-month, 8%, $31.500 note. Sold merchandise for cash totaling $9.936, which includes 8% sales taxes. 21 25 McGill and Smyth have capital balances on January 1 of $60,000 and $31.000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $15,000 for Smyth. (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth