On January 1, 2022, Crane Company's accounting records contained these liability accounts.

Accounts Payable		$42,700
Sales Taxes Payable		6,800
Unearned Service Revenue		19,200

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 $7,314, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $11,100. (Record Service Revenue.)
14		Paid state treasurers department for sales taxes collected in December 2021, $6,800.
20		Sold 520 units of a new product on credit at $45 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $79,400. Withholdings related to these wages were $6,074 for FICA, $5,671 for federal income tax, and $1,701 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. Wages or payroll tax expense have not been recorded as of January 31.

Prepare a tabular summary to record the January transactions and the adjustments on January 31 for the outstanding note payable and the salaries and wages expense and payroll tax expense. Include margin explanations for the changes in revenues and expenses

On January 1, 2022, Crane Company's accounting records contained these liability accounts. Accounts Payable $42,700 Sales Taxes Payable 6,800 Unearned Service Revenue 19,200 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 $7,314, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,100. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2021, $6,800. 20 Sold 520 units of a new product on credit at $45 per unit, plus 6% sales tax. During January, the company's employees earned wages of $79,400. Withholdings related to these wages were $6,074 for FICA, $5,671 for federal income tax, and $1,701 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. Wages or payroll tax expense have not been recorded as of January 31. (a) Prepare a tabular summary to record the January transactions and the adjustments on January 31 for the outstanding note payable and the salaries and wages expense and payroll tax expense. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to decimal places, e.g. 5,275.) Assets Cash + Accts. Rec. Notes Pay. + Acct. P Bal. $ $ $ $ Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 Adj. Jan. 31 Jan. 31 Jan. 31 Bal. Liabiliti Acct. Pay. + Salaries & Wages Pay. + Unearned Serv. Rev. + Sales Taxes Pay. 42700 $ $ 19200 $ 6800 Interest Pay. + FICA Taxes Pay. + Fed. Inc. Taxes Pay. + St. Inc. Taxes Pay. $ $ Stockholders' Equity Paid-in-Capital Retained Earnings Common Stock + Revenue Expense Dividend $ $ $ $ Service revenue Interest expense Payroll tax expense Salaries & wages expense Sales revenue > > > > >