On January 1, 2022, the ledger of Vaughn Company contains these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 5 12 During January, these selected transactions occurred. 14 20 21 $55,500 25 8,100 17,000 Sold merchandise for cash totaling $20,520, which includes 8% sales Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2021 ($8,100). 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. Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. Sold merchandise for cash totaling $8,532, which includes 8% sales taxes.

On January 1,2022 , the ledger of Vaughn Company contains these liability accounts. During January, these selected transactions occurred. 1.14. Solinerchandise for cash totaling $20,520, which includes 8% sal 12 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2021($8,100). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales t. This new product is subject to a 1 -year warranty. 21 Borrowed $22,500 from Girard Bank ona 3-month, 8\%, $22,500 note. 25 Sold merchandise for cash totaling $8,532, which includes 8% sales taxes. Journalite the January transactions. (Credit account bties are outometically indented whrn amount is entered. Do not indent manually Recond journal entries in the oeder prevented in the problem) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7$ of sales of the new product. (Hint-Use one-third of a month for the Girard Eank note.) (Oedit acoount titles are automatically indented when amount is entered. Do not indent manadly. Record journal entries in the order presented in the problem.) Prepare the current iabilities sectiog of the balance shect at January 31; 2022. Assume no chance in accounti payable On January 1,2022 , the ledger of Vaughn Company contains these liability accounts. During January, these selected transactions occurred. 1.14. Solinerchandise for cash totaling $20,520, which includes 8% sal 12 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2021($8,100). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales t. This new product is subject to a 1 -year warranty. 21 Borrowed $22,500 from Girard Bank ona 3-month, 8\%, $22,500 note. 25 Sold merchandise for cash totaling $8,532, which includes 8% sales taxes. Journalite the January transactions. (Credit account bties are outometically indented whrn amount is entered. Do not indent manually Recond journal entries in the oeder prevented in the problem) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7$ of sales of the new product. (Hint-Use one-third of a month for the Girard Eank note.) (Oedit acoount titles are automatically indented when amount is entered. Do not indent manadly. Record journal entries in the order presented in the problem.) Prepare the current iabilities sectiog of the balance shect at January 31; 2022. Assume no chance in accounti payable