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Please help me do this accounting exercise. Thank you so much. On January 1, 2020, the ledger of ESG Company contains the following liability accounts.
Please help me do this accounting exercise. Thank you so much.
On January 1, 2020, the ledger of ESG Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $52,000 8,800 16,000 During January, the following selected transactions occurred. Jan. 1 Borrowed $27,000 from Busey Bank on a 3-month, 8%, $27,000 note. 5 Sold merchandise for cash totaling $38,880, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $9,000. 14 Paid revenue department for sales taxes collected in December 2019 ($8,800). 20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a one-year warranty. Warranty costs are expected to equal 7% of sales of the new product. Required: Answer the following TWO parts. (a) Journalize the January transactions. Debit Credit Date Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 (b) Prepare any necessary adjusting entries at January 31. Debit Credit Date Jan. 31 (adjusting entries)Step by Step Solution
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