Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2022, the ledger of Sandhill Co.contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $43,500 7.600 20,000 During January,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2022, the ledger of Sandhill Co.contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $43,500 7.600 20,000 During January, the following selected transactions occurred. Jan. 1 5 12 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. Sold merchandise for cash totaling $5,300, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,600. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $7,600 Sold 600 units of a new product on credit at $46 per unit, plus 6% sales tax. 14 20 During January, the company's employees earned wages of $86,000. Withholdings related to these wages were $6,579 for Social Security (FICA), $5,207 for federal income tax, and $1,562 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 Date Account Titles and Explanation Debit Credit 1 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 I Debit Credit Jan. 31 (To record the interest on outstanding notes payable.) Jan. 31 (To record payroll and withholding taxes.) Jan. 31 (To record employer's payroll taxes.) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. SANDHILL CO. Balance Sheet (Partial) + $

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

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds

10th Edition

126410068X, 9781264100682

More Books

Students also viewed these Accounting questions

Question

Where is the position?

Answered: 1 week ago

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago