On January 1, 2022, the ledger of Coronado Company contains these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 5 12 During January, these selected transactions occurred. 14 20 21 $56,000 25 8,100 16,000 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2021 ($8,100). Sold 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. Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. Sold merchandise for cash totaling $7,128, which includes 8% sales taxes.

On January 1,2022, the ledger of Coronado Company contains these liability accounts. During January, these selected trarisactions occurred. Jan.5 Sold merchandise for cash totaling $20.520, which includes 8% sales taves. 12 Performed services for customers who had made advance payments of \$10.500. (Credit Service Revenue.) 14 Paidstate revenue departunent for sales taxes collected in December 2021($8,100). 20 Sold 900 units of a new product on credit at 550 per unit, plus 8% sales tax. This new product is subject to a 1 - year warranty: 21 Borrowed $22,500 from GirardBank on a 3-month, 8%,$22,500 note. 25 Sold merchandise for cash totaling $7,128, which includes 8%6 sales taves- 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 occount titles are outomotically indented when amount is entered. Do not indent manuall), Record journal entries in the order presented in the