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Problem 10-1A (Part Level Submission) On January 1, 2017, the ledger of Sheridan Company contained these liability accounts Accounts Payable Sales Taxes Payable Unearned Service
Problem 10-1A (Part Level Submission) On January 1, 2017, the ledger of Sheridan Company contained these liability accounts Accounts Payable Sales Taxes Payable Unearned Service Revenue $44,200 7,500 20,800 During January, the following selected transactions occurred. lan. 1 Borrowed S18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totalng $6,254, which includes 6% sales taxes. 12 Performed services for custamers who had made advance payments of $12,500. (Credit Service Revenue. 14 Pald state treasurer's department for sales taxes collected in December 2016, $7,500 20 sold 680 units of new product on credit at $53 per unit, plus 6% sales tax. s taxes During January, the company's employees eamed wages of $70,300, withholdings related to these wages were $5,376 for Socdal Security (FICA), $5,021 for federal income tax, and $1,506 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 lournalize 5,275.) the January tran sactions. Credit account titles are autornatica indented when amount s en ered Do not indent manually Record journal entries he order presented in he problem Round nswers to nearest who e do ar mount, e.g. in Date Account Titles and Explanation Debit Credit Jan. 1 Cash Notes Payable Jan. 5 Cash 62 Sales Revenue Sales Taxes Payable 354 Unearned Service Revenue Jan. 12 Service Revenue Jan. 14 Sales Taxes Payable 500 Cash Jan. 20 Accounts Receivable Salas Revenue Sales Taxes Payable ournalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payrall 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 Iinterest Expens 75 Interest Payablo To record the interest on outstanding notes payable.) a. 31 Salaries and Wages Expens 0,300 FICA Taxes Payable 5,378 Federal Income Taxes Payable 5,021 State Income Taxes Payable Salaries and Wages Payable 59 (To record payroll and withholding taxes.) Jan. 31 Payrall Tax Expense 5,378 FICA Taxes Payable 5,373 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. SHERIDAN COMPANY Balance Sheet (Partial)
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