Problem 5 On January 1, 2018, the ledger of Hiatt Company contained these liability accounts: $42,500 6,600 Accounts Payable Sales Taxes Payable During January, the following selected transactions occurred. Jan. 1. Borrowed $ 18,000 in cash from Banco El Popular on a 4-month, 5%, $18,000 note. 5. Sold merchandise for cash totaling $6,254, which includes 6% sales tax. 12. Paid state treasure's department for sales collected in December 2017, $6,600. 18. Sold 500 units of a new product on credit at $48 per unit, plus 6% sales Tax. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entry at January 31, 2018 for the outstanding note payable. (c) Prepare the current liability section of the balance sheet at January 31, 2018. Assume no change in Accounts Payable