Problem 10-1A (Part Level Submission)

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

Accounts Payable		$44,200
Sales Taxes Payable		7,450
Unearned Service Revenue		20,700

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 $6,678, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $12,100. (Credit Service Revenue.)
14		Paid state treasurers department for sales taxes collected in December 2016, $7,450.
20		Sold 670 units of a new product on credit at $55 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $71,300. Withholdings related to these wages were $5,454 for Social Security (FICA), $5,093 for federal income tax, and $1,528 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 expenses as of January 31.

(c) Your answer is partially correct. Try again. Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable. PHAROAH COMPANY Balance Sheet (Partial) January 31, 2017 Current Liabilities Notes Payable 18000 Accounts Payable 44,200 Salaries and Wages Payable 59225 FICA Taxes Payable 5454 Unearned Service Revenue 8,600 Federal Income Taxes Payable 5093 Sales Taxes Payable 2589 State Income Taxes Payable 1528 Interest Expense 75 Total Current Liabilities 151836