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On January 1 2022. the ledger of Ivanhoe Company contained these liability accounts, $42.900 Accounts Payable Sales Taxes Payable Uneared Service Revenue 7.000 19.400 During

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On January 1 2022. the ledger of Ivanhoe Company contained these liability accounts, $42.900 Accounts Payable Sales Taxes Payable Uneared Service Revenue 7.000 19.400 During January, the following selected transactions occurred. Jan, 1 5 12 Borrowed $18,000 in cash from Apex Bank on a 4 month, 5%, $18,000 note. Sold merchandise for cash totaling $7.420, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,200. (Credit Service Revenue) Paid state treasurer's department for sales taxes collected in December 2021.57,000. Sold 540 units of a new product on credit at $47 per unit, plus 5% sales tax. 14 20 During January, the company's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for Social Security (FICA), S5,064 for federal income tax, and $1,519 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. Date Account Titles and Explanation Debit Credit an.1 Cash 18225 Bonds Payable 18225 an. 5 Cash 7420 Sales Taxes Payable 445 20 Sales Revenue 7865.20 an. 12 Unearned Service Revenue 10200 Service Revenue 10200 an. 14 Sales Taxes Payable 7000 Cash 7000 an. 20 Accounts Receivable 25380 Sales Taxes Payable 1269 Sales Revenue 26649 Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Tities and Explanation Debit Credit Jan. 31 Interest Expense 900 Interest Payable 900 (To record the interest on outstanding notes payable.) Salaries and Wages Expense Jan. 31 61756 Salaries and Wages Payable 61756 FICA Taxes Payable 5661 Federal Income Taxos Payable 5064 State Income Taxes Payable 1519 (To record payroll and withholding taxes.) Jan. 31 Payroll Tax Expense 12244 Cash 12244 (To record employer's payroll taxes.) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. IVANHOE COMPANY Balance Sheet (Partial) January 31, 2022 Current Liabilities Accounts Payable $ 42900 Notes Payable 18225 Interest Payable 225 Salaries and Wages Payable 61756 FICA Taxes Payable 5661 Federal Income Taxes Payable 5064 State Income Taxes Payable 1519 Bonds Payable 18225 Sales Taxes Payable 8714.20 Total Liabilities 162289.20

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