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P10.1A (LO 1, 4), AP on January 1, 2022, the ledger of Romada Company contained these liability accounts. Accounts Payable $42,500 Sales Taxes Payable 6,600

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P10.1A (LO 1, 4), AP on January 1, 2022, the ledger of Romada Company contained these liability accounts. Accounts Payable $42,500 Sales Taxes Payable 6,600 Unearned Service Revenue 19,000 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 $6,254, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2021, $6,600. 20 Sold 500 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company's employees earned wages of $70,000. Withholdings related to these wages were $5,355 for FICA, $5,000 for federal income tax, and $1,500 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. Instructions a. Journalize the January transactions. b. Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. c. Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. P10.9A (LO 3, 4, 5), AP Saylor Co. sold $3,000,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Instructions a. Prepare the journal entries to record the issuance of the bonds assuming they sold at: 1. 103. 2. 98. b. Prepare amortization tables for both assumed sales for the first three interest payments. c. Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assumed in part (a). d. Show the long-term liabilities balance sheet presentation for both of the bond issuances assumed in part (a) at December 31, 2022

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