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Problem 10-01A (Part Level Submission) On January 1, 2022, the ledger of Wildhorse Co. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service
Problem 10-01A (Part Level Submission) On January 1, 2022, the ledger of Wildhorse Co. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $44,700 8,800 21,200 During January, the following selected transactions occurred. Jan. 1 5 12 14 20 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. Sold merchandise for cash totaling $5,512, which includes 6% sales taxes. Performed services for customers who had made advance payments of $13,000. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $8,800. Sold 720 units of a new product on credit at $49 per unit, plus 5% sales tax. During January, the company's employees earned wages of $58,000. Withholdings related to these wages were $4,437 for Social Security (FICA), $5,379 for federal income tax, and $1,614 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. Your answer is correct. Journalize the January transactions. (Credit account titles are automatically indented when amount 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 18000 Notes Payable 18000 Jan. 5 > Cash 5512 Sales Revenue 5200 Sales Taxes Payable 312 Jan. 12 Tunearned Service Revenue 13000 Service Revenue 13000 Jan. 14 Sales Taxes Payable 8800 Cash 8800 Jan. 20 Accounts Receivable 37044 > Sales Revenue 35280 Sales Taxes Payable 1764 Click if you would like to Show Work for this question: Open Show Work (b) Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit Date Account Titles and Explanation Debit Credit Jan. 31 (To record the interest on outstanding notes payable.) Jan. 31 (To record payroll and withholding taxes.) Jan. 31 (To record employer's payroll taxes.) Cliale if you nou Hotoboos forbicaraan non how York (c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. WILDHORSE CO. Balance Sheet (Partial) $
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