Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2022, the ledger of Blossom Company contained these liability accounts. Accounts Payable $44,800 Sales Taxes Payable 8,900 Unearned Service Revenue 21,300 During

On January 1, 2022, the ledger of Blossom Company contained these liability accounts.

Accounts Payable $44,800
Sales Taxes Payable 8,900
Unearned Service Revenue 21,300

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 $6,466, which includes 6% sales taxes.
12 Performed services for customers who had made advance payments of $13,800. (Credit Service Revenue.)
14 Paid state treasurers department for sales taxes collected in December 2021, $8,900.
20 Sold 730 units of a new product on credit at $45 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $56,000. Withholdings related to these wages were $4,284 for Social Security (FICA), $5,593 for federal income tax, and $1,678 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. No entry had been recorded for wages or payroll tax expense as of January 31.

Journalize the January Transactions -

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Accounting Auditing Concepts Internal Auditing And Guiding

Authors: Bertram Bessette

1st Edition

B09PMFWVSJ, 979-8796265253

More Books

Students also viewed these Accounting questions

Question

Find the function value. Round to four decimal places. cos 27345

Answered: 1 week ago