On January 1, 2022, the ledger of Sheridan Company contained these liability accounts.

Accounts Payable		$43,200
Sales Taxes Payable		7,300
Unearned Service Revenue		19,700

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 $5,936, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $10,300. (Credit Service Revenue.)
14		Paid state treasurers department for sales taxes collected in December 2021, $7,300.
20		Sold 570 units of a new product on credit at $52 per unit, plus 5% sales tax.

During January, the companys employees earned wages of $80,000. Withholdings related to these wages were $6,120 for Social Security (FICA), $5,629 for federal income tax, and $1,689 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.

(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	enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amount	enter a credit amount
	enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amount	enter a credit amount
	(To record the interest on outstanding notes payable.)
Jan. 31	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	(To record payroll and withholding taxes.)
Jan. 31	enter an account title to record employer's payroll taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record employer's payroll taxes on January 31	enter a debit amount	enter a credit amount
	(To record employers payroll 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. Round answers to nearest whole dollar amount, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 18000 Notes Payable 18000 Jan. 5 Cash 5936 Sales Revenue 5600 Sales Taxes Payable 336 Jan. 12 Unearned Service Revenue 10300 Service Revenue 10300 Jan. 14 Sales Taxes Payable 7300 Cash 7300 Jan. 20 V || Accounts Receivable 31122 Sales Revenue 29640 Sales Taxes Payable 1482