Problem 10 1A On January 1, 2017, the ledger of Cullumber Company contained these liability accounts Accounts Payable $43,900 Sales Taxes Payable 7,300 Unearned Service Revenue 20,400 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 $6,572, which includes 6 sales taxes 12 Performed services for customers who had made advance payments of $12,000 (Credit Service Revenue ) 14 Paid state treasurers department for sales taxes collected in December 2016, $7,300 20 Sold 640 units of a new product on credit at $48 per unit, plus 6 sales tax During January, the companys employees earned wages of $76,800 Withholdings related to these wages were $5,875 for Social Security (FICA), $5,486 for federal income tax, and $1,646 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 Interest Expense 75 Interest Payable 75 (To record the interest on outstanding notes payable ) Jan 31 Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Salaries and Wages Payable (To record payroll and withholding taxes ) Jan 31 Payroll Tax Expense FICA Taxes Payable (To record employer's payroll taxes ) Prepare the current liabilities section of the balance sheet at January 31, 2017 Assume no change in Accounts Payable CULLUMBER COMPANY Balance Sheet (Partial) January 31, 2017 Current Liabilities Accounts Payable Sales Taxes Payable Unearned Service Revenue Notes Payable Salaries and Wages Payable bbdddddddd FICA Taxes Payable Federal Income Taxes Payable Salaries and Wages Payable State Income Taxes Payable Total Current Liabilities

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Problem 10-1A On January 1, 2017, the ledger of Cullumber Company contained these liability accounts. Accounts Payable $43,900 Sales Taxes Payable 7,300 Unearned Service Revenue

Problem 10-1A

On January 1, 2017, the ledger of Cullumber Company contained these liability accounts.

Accounts Payable		$43,900
Sales Taxes Payable		7,300
Unearned Service Revenue		20,400

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 $6,572, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.)
14		Paid state treasurers department for sales taxes collected in December 2016, $7,300.
20		Sold 640 units of a new product on credit at $48 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $76,800. Withholdings related to these wages were $5,875 for Social Security (FICA), $5,486 for federal income tax, and $1,646 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.

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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 Interest Expense 75 Interest Payable 75 (To record the interest on outstanding notes payable.) Jan. 31 Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Salaries and Wages Payable (To record payroll and withholding taxes.) Jan. 31 Payroll Tax Expense FICA Taxes Payable (To record employer's payroll taxes.) Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable. CULLUMBER COMPANY Balance Sheet (Partial) January 31, 2017 Current Liabilities Accounts Payable Sales Taxes Payable Unearned Service Revenue Notes Payable Salaries and Wages Payable bbdddddddd FICA Taxes Payable Federal Income Taxes Payable Salaries and Wages Payable State Income Taxes Payable Total Current Liabilities