On January 1, 2022, the ledger of Sheffield Company contains these liability accounts.

Accounts Payable		$51,500
Sales Taxes Payable		7,300
Unearned Service Revenue		17,000

During January, these selected transactions occurred.

Jan. 5		Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
12		Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.)
14		Paid state revenue department for sales taxes collected in December 2021 ($7,300).
20		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.
21		Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note.
25		Sold merchandise for cash totaling $10,368, which includes 8% sales taxes.

(a)

(b)

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 account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	choose a transaction date Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
		enter an account title to record the first transaction	enter a debit amount	enter a credit amount
2.	choose a transaction date Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
		enter an account title to record the second transaction	enter a debit amount	enter a credit amount

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(c)

Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable.

Sheffield Company Balance Sheet (Partial) choose the accounting period For the Year Ended January 31, 2022For the Quarter Ended January 31, 2022January 31, 2022
select an opening section name Current AssetsCurrent LiabilitiesTotal Current AssetsTotal Current LiabilitiesLong-term InvestmentsShort-Term InvestmentsIntangible AssetsTotal Intangible AssetsOwner's EquityTotal Owner's EquityProperty, Plant and EquipmentTotal Property, Plant and EquipmentTotal AssetsTotal Liabilities and Owner's Equity
enter a balance sheet item		$enter a balance sheet item
enter a balance sheet item		enter a balance sheet item
enter a balance sheet item		enter a balance sheet item
enter a balance sheet item		enter a balance sheet item
enter a balance sheet item		enter a dollar amount
enter a balance sheet item		enter a dollar amount
select a closing section name Total Liabilities and Owner's EquityTotal Intangible AssetsLong-term InvestmentsCurrent AssetsProperty, Plant and EquipmentTotal Current LiabilitiesCurrent LiabilitiesTotal Property, Plant and EquipmentTotal Current AssetsOwner's EquityTotal AssetsShort-Term InvestmentsIntangible AssetsTotal Owner's Equity		$enter a total amount for this section