View Policies Show Attempt History Current Attempt in Progress On January 1, 2020, the ledger of Waterway Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 5 During January, the following selected transactions occurred. 12 14 20 21 25 (a) Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. $54,000 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2019 ($7,200). Your answer is correct. 7,200 16,500 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. Borrowed $31,500 from Girard Bank on a 3-month, 8%, $31,500 note. Sold merchandise for cash totaling $9,936, which includes 8% sales taxes. Date 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.) Jan. 5 Cash Account Titles and Explanation Sales Revenue Debit 20520 Credit 19000 Date Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 21 Jan. 25 V Account Titles and Explanation Cash Sales Revenue List of Accountr Sales Taxes Payable Unearned Service Revenue Service Revenue Sales Taxes Payable Cash Accounts Receivable Sales Revenue Sales Taxes Payable Cash Notes Payable Cash Sales Revenue Sales Taxes Payable e Textbook and Media Debit 20520 11000 7200 48600 31500 9936 Credit 19000 1520 11000 7200 45000 3600 31500 9200 736 (b) - Your answer is partially correct. Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. 1. 2. Date Jan. 31 Jan. 31 List of Accounts Save for Later Account Titles and Explanation Interest Expense eTextbook and Media Interest Payable Warranty Expense Warranty Liability Debit 210 5124 Credit 210 5124 Attempts: 1 of 3 used Submit