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On January 1, 2022, the ledger of Sheffield Company contains these liability accounts. Accounts Payable $51.500 Sales Taxes Payable 7.300 Uneared Service Revenue 17,000 During
On January 1, 2022, the ledger of Sheffield Company contains these liability accounts. Accounts Payable $51.500 Sales Taxes Payable 7.300 Uneared 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.) 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. 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.) Date Account Titles and Explanation Debit Credit Jan. 5 Cash Sales Revenue Sales Taxes Payable Jan 12 Unearned Service Revenue Service Revenue Jan. 14 Sales Taxes Payable Cash Jan. 20 Accounts Receivable Sales Revenue Sales Taxes Payable Jan 21 Cash Notes Payable Jan 25 Cash I Sales Revenue Sales Taxes Payable 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.) Date Account Titles and Explanation Debit Credit Jan. 31 Interest Expense Interest Payable Jan. 31 Warranty Expense Warranty Liability e Textbook and Media Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable. Sheffield Company Balance Sheet (Partial) January 31, 2022 Current Liabilities Notes Payable $ Accounts Payable Unearned Service Revenue Sales Taxes Payable Warranty Liability Interest Payable Total Current Liabilities $
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