Problem 11 01A a c (Video) On January 1, 2020, the ledger of Vaughn Company contains the following liability accounts Accounts Payable $57,000 Sales Taxes Payable 8,400 Unearned Service Revenue 16,500 During January, the following selected transactions occurred Jan 5 Sold merchandise for cash totaling $20,520, which includes 8 sales taxes 12 Performed services for customers who had made advance payments of $10,500 (Credit Service Revenue ) 14 Paid state revenue department for sales taxes collected in December 2019 ($8,400) 20 Sold 900 units of a new product on credit at $50 per unit, plus 8 sales tax This new product is subject to a 1 year warranty 21 Borrowed $22,500 from Girard Bank on a 3 month, 8 , $22,500 note 25 Sold merchandise for cash totaling $9,288, which includes 8 sales taxes 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 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7 of sales of the new product ( Hint Use one third of a month for the Girard Bank note ) (Credit account titles are automatically indented when amount is entered Do not indent manually Record journal entries in the order presented in the problem ) No Date Account Titles and Explanation Debit Credit 1 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 2 Jan 5Jan 12Jan 14Jan 20Jan 21Jan 25Jan 31 Prepare the current liabilities section of the balance sheet at January 31, 2020 Assume no change in accounts payable

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Problem 11-01A a-c (Video) On January 1, 2020, the ledger of Vaughn Company contains the following liability accounts. Accounts Payable $57,000 Sales Taxes Payable 8,400

Problem 11-01A a-c (Video)

On January 1, 2020, the ledger of Vaughn Company contains the following liability accounts.

Accounts Payable		$57,000
Sales Taxes Payable		8,400
Unearned Service Revenue		16,500

During January, the following selected transactions occurred.

Jan. 5		Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
12		Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.)
14		Paid state revenue department for sales taxes collected in December 2019 ($8,400).
20		Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty.
21		Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note.
25		Sold merchandise for cash totaling $9,288, which includes 8% sales taxes.

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
Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31


Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31


Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31

2.	Jan. 5Jan. 12Jan. 14Jan. 20Jan. 21Jan. 25Jan. 31