Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 10-1A On January 1, 2017, the ledger of Sheridan Company contained these liability accounts. Accounts Payable $43,200 Sales Taxes Payable 6,950 Unearned Service Revenue

Problem 10-1A

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

Accounts Payable $43,200
Sales Taxes Payable 6,950
Unearned Service Revenue 19,700

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 $5,936, which includes 6% sales taxes.
12 Performed services for customers who had made advance payments of $10,300. (Credit Service Revenue.)
14 Paid state treasurers department for sales taxes collected in December 2016, $6,950.
20 Sold 570 units of a new product on credit at $52 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $78,800. Withholdings related to these wages were $6,028 for Social Security (FICA), $5,629 for federal income tax, and $1,689 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.

a)Journalize the January transactions.

b)Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense

c)Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Benfords Law

Authors: Mark J. Nigrini

1st Edition

1118152859, 9781118152850

More Books

Students also viewed these Accounting questions