| 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. | |
