Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show Attempt History Current Attempt in Progress On January 1, 2025, the ledger of Sandhill Co. contained these liability accounts. During January, the following selected

image text in transcribed
image text in transcribed
image text in transcribed
Show Attempt History Current Attempt in Progress On January 1, 2025, the ledger of Sandhill Co. contained these liability accounts. 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 $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) 14 Paid state treasurer's department for sales Laxes collected in December 2024, $8,700. 20 Sold 710 units of a new product on credit at $54 per unit, plus 5% sales tax. During Janwary, the company's emploves earned wages of $60,000. Withholdings related to these wages were $4,590 for FICA $4,300 for federal income tax, and $1,560 for state income tax. The company owed no money related to these earnings for federal o state unemployment tax Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tak expense as of January 31 . During January, the company's employees earned wages of $60,000. Withholdings related to these wages were $4,590 for FICA, $4,300 for federal income tax, and $1,560 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 adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payrolirtax expense. (List all debit entries before credit entries Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Review Part 2 Internal Audit Practice For The New 3 Part Exam

Authors: Irvin N.Gleim

17th Edition

158194375X, 978-1581943757

More Books

Students also viewed these Accounting questions

Question

What were the results?

Answered: 1 week ago