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On January 1, 2022, the ledger of Pharoah Company contained these liability accounts. Accounts Payable Sales Taxes Payable Uneared Service Revenue $43.100 7.200 19,600 During

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On January 1, 2022, the ledger of Pharoah Company contained these liability accounts. Accounts Payable Sales Taxes Payable Uneared Service Revenue $43.100 7.200 19,600 During January, the following selected transactions occurred. 5 Jan 1 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 $11.100. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $7.200. 20 Sold 560 units of a new product on credit at $49 per unit, plus 5% sales tax. 12 During January, the company's employees earned wages of $78,000. Withholdings related to these wages were $5,967 for Social Security FICA. 55.236 for federal income tax, and $1.571 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. Your answer is correct 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 Cashi 18,000 Notes Payable 18,000 Jans Cash 7,420 Sales Tees Payable 420 Sales Revenue 7,000 tan 12 Uneared Service Revenue 11.100 Service Revenue 11,100 Jan 14 Sales Taos Payable 7.200 Cash 7,200 Jan 20 Accounts Receivable 28,812 Sales Taxes Payable 1,372 Sales Revenue 27,440 (b ) 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 Titles and Explanation Debit Credit 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.)

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