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On January 1, 2022, Cullumber Company's accounting records contained these liability accounts. Accounts Payable $43,900 Sales Ta xes Payable 8,000 Unearned Service Revenue 20,400 During

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On January 1, 2022, Cullumber Company's accounting records contained these liability accounts. Accounts Payable $43,900 Sales Ta xes Payable 8,000 Unearned Service Revenue 20,400 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Ape): Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,572, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2021, $8,000. 20 Sold 640 units of a new product on credit at $50 per unit, plus 6% sales tax. During January, the company's employees earned wages of $115,300. Withholdings related to these wages were $5,875 for FICA, $5,486 for federal income tax, and $1,646 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. Your answer is partially correct. 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 O decimal places, e.g. 5,275.)\fAcct. Pay. + Salaries & Wages Pay. + Unearned Serv. Rev. + Sales LA 43,900 LA 20,400 LA -12,000 i i 63,793 43,900 63,793 8,400Liabilities Sales Taxes Pay. Interest Pay. + FICA Taxes Pay. + Fed. Inc. Ta 8,000 $ $ i $ i i i 372 i -8,000 1,920 1 75 i i i 2.292 75Paid-ir Fed. Inc. Taxes Pay. + St. Inc. Taxes Pay. + State Unemp. Taxes Pay. Comm i $ i i i i i i i i i i i 5,486 1,646 i 5,486 1,646\fSalaries & wages expense Payroll tax expense Sales revenue Interest expense Service revenue

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