Question 3

On January 1, 2017, the ledger of Cullumber Company contained these liability accounts.

Accounts Payable $42,800 Sales Taxes Payable 6,750 Unearned Service Revenue 19,300

During January, the following selected transactions occurred.

Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $5,512, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,800. (Credit Service Revenue.) 14 Paid state treasurers department for sales taxes collected in December 2016, $6,750. 20 Sold 530 units of a new product on credit at $50 per unit, plus 6% sales tax.

During January, the companys employees earned wages of $70,700. Withholdings related to these wages were $5,409 for Social Security (FICA), $5,050 for federal income tax, and $1,515 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.

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. Round answers to nearest whole dollar amount, e.g. 5,275.)

Date Account Titles and Explanation Debit Credit choose a transaction date Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1 Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amount enter a credit amount enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amount enter a credit amount (To record the interest on outstanding notes payable.) Jan. 31 enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount (To record payroll and withholding taxes.) Jan. 31 enter an account title to record employer's payroll taxes on January 31 enter a debit amount enter a credit amount enter an account title to record employer's payroll taxes on January 31 enter a debit amount enter a credit amount (To record employers payroll taxes.)

Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable.

CULLUMBER COMPANY Balance Sheet (Partial) choose the accounting period For the Month Ended January 31, 2017 For the Year Ended January 31, 2017 January 31, 2017 select an opening subsection name Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount select a closing subsection name Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity $enter a total amount for this subsection