Recording and ReportingCurrent Liabilities

The following is a list of liability accounts on the ledger of Chop House Incorporated on January 1:

Sales Tax Payable $7500

Accounts Payable $9500

Unearned Service Revenue $16500

The following transactions occurred during the month of January:

Jan. 1 Borrowed $25000 from Atlanta Bank on a 6-month, 6% note

9 Provided service for customers who had paid $6000 in advance

15 Paid state treasurer for sales taxes collected in December, $7500

18 Bought inventory on credit for $12000

23 Sold goods on credit for $3000, plus 7% sales tax

The employees of the Chop House earned gross salaries of $45,000 during January. Withholdings were $2,500 for Social Security, $4,000 for federal income tax, and $1,900 for state income tax. The employer share of FICA taxes was also $2,500. Salaries earned in January will be paid during February.

Required:

Create the current liability section of the balance sheet at January 31.

Chop House

Current Liabilities Section

January 31

Accounts Payable

$

Notes Payable

Federal Tax Withholdings Payable

FICA Taxes Payable

Interest Payable

Salaries Payable

Sales Tax Payable

State Tax Withholdings Payable

Unearned Revenue

Total Current Liabilities

$