Problem 10-1 On January 1, 2014, the ledger of Hiatt Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $50,590 7,263 31,800 During January, the following selected transactions occurred. Borrowed $20,160 in cash from Premier Bank on a 4-month, 5%, $20,160 note. Sold merchandise for cash totaling $7,208, which includes 6% sales taxes Performed services for customers who had made advance payments of $23,661. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2013, $7,263 sold 500 units of a new product on credit at $46 per unit, plus 6% sales tax. Jan. 1 5 12 14 20 surer's department for During January, the company's employees earned wages of $78,970. Withholdings related to these wages were $6,041 for Social Security (FICA), $5,641 for federal income tax, and $1,692 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 January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit