Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
On January 1, 2022, the ledger of Oriole Company contained these liability accounts. Accounts Payable $ 43,000 Sales Taxes Payable 7.100 Unearned Service Revenue 19,500
On January 1, 2022, the ledger of Oriole Company contained these liability accounts. Accounts Payable $ 43,000 Sales Taxes Payable 7.100 Unearned Service Revenue 19,500 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 55,724 which includes 6% sales taxes. Performed services for customers who had made advance payments of $ 10,400. (Credit Service Revenue) Paid state treasurer's department for sales taxes collected in December 2021, $ 7.100, Sold 550 units of a new product on credit at $ 45 per unit, plus 6% sales tax 14 20 During January, the company's employees earned wages of $ 76,000. Withholdings related to these wages were $ 5.814 for Social Security (FICA, 55214 for federal income tax and $1564 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. (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, eg. 5,275.) Date Account Titles and Explanation Debit Credit Jan 1 Cash 18.000 Notes Payable 18,000 Jan. 5 V Cash 6,572 Sales Revenue Sales Taxes Payable Jan 12 Unearned Service Revenue 10.400 Service Revenue 10,400 Jan 14 Sales Tres Payable 7.100 Cash 7.100 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 ore automatically 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) ORIOLE COMPANY Balance Sheet (Partial) $ $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started