Recording and Reporting Current Liabilities The following is a list of liability accounts on the ledger of Chop House Incorporated on January 1

eBook Problem 9-36 Recording and Reporting Current Liabilities The following is a list of liability accounts on the ledger of Chop House Incorporated on January 1: 7,500 Sales Tax Payable Accounts payable 9,500 Unearned Service Revenue 16,500 The following transactions occurred during the month of January: Jan. 1 Borrowed $25,000 from Atlanta Bank on a 6-month, 6% note. 9 Provided service for customers who had paid $6,000 in advance. 15 Paid state treasurer for sales taxes collected in December, $7,500. 18 Bought inventory on credit for $12,000. 23 Sold goods on credit for $3,000, 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