P11-1A

Visit the books companin the Student Companion site to access Exercises: Set P11-1A On January 1, 2017, the ledger of Accardo Company contains the follow accounts. PROBLEMS: SET A repare current liability tries, adjusting entries, and rrent liabilities section Accounts Payable Sales Taxes Payable Unearned Service Revenue $52,000 7,700 16,000 0 LS During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 12 Paid state reveue department for sales taxes collected in December 20)16 ($7,700). 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 $27,000 from Girard Bank on a 3-month, 8%, $27,000 note. Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. 14 20 21 25 Instructions (a) Journalize the January transactions (b) 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 ro of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note nt liability total 50 (c) Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in accounts payable. and post note P11-2A The following are selected transactions of Blanco Commany Rlanco nrrares s; show balance financial statements quarterl