Problem 11-1A

On January 1, 2017, the ledger of Accardo Company contains the following liability accounts.

Accounts Payable		$51,000
Sales Taxes Payable		8,200
Unearned Service Revenue		16,000

During January, the following selected transactions occurred.

Jan. 5		Sold merchandise for cash totaling $20,944, which includes 12% sales taxes.
12		Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.)
14		Paid state revenue department for sales taxes collected in December 2016 ($8,200).
20		Sold 900 units of a new product on credit at $50 per unit, plus 12% sales tax. This new product is subject to a 1-year warranty.
21		Borrowed $22,500 from Girard Bank on a 3-month, 12%, $22,500 note.
25		Sold merchandise for cash totaling $13,552, which includes 12% sales taxes.