Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts Payable $44,400 Sales Taxes Payable 8,500 Unearned Service Revenue 20,900 During

On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts Payable $44,400 Sales Taxes Payable 8,500 Unearned Service Revenue 20,900 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 $5,724, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,700. (Credit Service Revenue.) 14 Paid state treasurers department for sales taxes collected in December 2021, $8,500. 20 Sold 690 units of a new product on credit at $46 per unit, plus 5% sales tax.

During January, the companys employees earned wages of $64,000. Withholdings related to these wages were $4,896 for Social Security (FICA), $5,614 for federal income tax, and $1,684 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.

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

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Morse Hartgraves

8th Edition

1618532359, 9781618532350

More Books

Students also viewed these Accounting questions

Question

=+2. Are you happy to pay a price premium for CSR products?

Answered: 1 week ago