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On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $42.900 7.000 19,400 During

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On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $42.900 7.000 19,400 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 $7,420, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,200. (Credit Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2021, $7,000. 20 Sold 540 units of a new product on credit at $47 per unit, plus 5% sales tax. During January, the company's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for Social Security (FICA), $5,064 for federal income tax, and $1,519 for state income tax. The company owed no money related to these earnings for federal or sate 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount, e.g. 5,275.) Date Account Tities and Explanation Debit Credit 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 au Indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 31 (To record the interest on outstanding notes payable.) Jan. 31 (To record payroll and withholding taxes.) Jan. 31 (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. TVANHOE COMPANY Balance Sheet (Partial) IVANHOE COMPANY Balance Sheet (Partial)

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