Problem 10-01A (Part 2)

On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts.

Accounts Payable		$43,500
Sales Taxes Payable		7,600
Unearned Service Revenue		20,000

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 $5,300, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $10,600. (Credit Service Revenue.)
14		Paid state treasurers department for sales taxes collected in December 2021, $7,600.
20		Sold 600 units of a new product on credit at $46 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $86,000. Withholdings related to these wages were $6,579 for Social Security (FICA), $5,207 for federal income tax, and $1,562 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.

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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amount	enter a credit amount
	enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amount	enter a credit amount
	(To record the interest on outstanding notes payable.)
Jan. 31	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	(To record payroll and withholding taxes.)
Jan. 31	enter an account title to record employer's payroll taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record employer's payroll taxes on January 31	enter a debit amount	enter a credit amount
	(To record employers payroll taxes.)

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

SANDHILL CO. Balance Sheet (Partial) choose the accounting period For the Year Ended January 31, 2022January 31, 2022For the Month Ended January 31, 2022
select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing subsection name Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity			$enter a total amount for this subsection

List Of Accounts

Problem 10-01A

Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Accrued Pension Liability Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Current Portion of Long-Term Debt Depreciation Expense Discount on Bonds Payable Dividends Equipment Federal Income Taxes Payable Federal Unemployment Taxes Payable FICA Taxes Payable Gain on Bond Redemption Income Tax Expense Income Taxes Payable Insurance Expense Interest Expense Interest Payable Inventory Land Loss on Bond Redemption Mortgage Payable No Entry Notes Payable Other Operating Expenses Payroll Tax Expense Premium on Bonds Payable Prepaid Insurance Property Taxes Payable Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Sales Taxes Payable Service Revenue Share Premium-Conversion Equity State Income Taxes Payable State Unemployment Taxes Payable Subscription Revenue Ticket Revenue Unearned Rent Revenue Unearned Sales Revenue Unearned Service Revenue Unearned Subscription Revenue Unearned Ticket Revenue Union Dues Payable Warranty Liability