Problem 5 (optional). On January 1, 2018, the ledger of Daniels Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $42,500 6,600 19,000 10-1 During January the following selected transactions occurred. Jan. 1 5 12 14 20 Borrowed $12,000 in cash from Midland Bank on a 4-month, 8%, $12,000 note. Sold merchandise for cash totaling $6,510, which includes 5% sales taxes. Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2017, S6,600. Sold 500 units of a new product on credit at $48 per unit, plus 5% sales tax. During January, the company's employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $5,000 for federal income tax, and $1,500 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 expense as of January 31 Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31, 2018 for the outstanding note payable and for wages expense and payroll tax expense (c) Prepare the current liabilities section of the balance sheet at January 31, 2018. Assume no change in Accounts Payable