Waterway Company's balance sheet at December $31,2021,$ is presented below.

WATERWAY COMPANY Balance Sheet December $31,2021$

Cash

$$38,400$

Accounts Payable

$$17,600$

Inventory

$39,360$

Interest Payable

$320$

Prepaid Insurance

$7,680$

Notes Payable

Owner's Capital

$64,000$

Equipment

$48,640$

$52,160$

$$134,080$

$$134,080$

During January $2022,$ the following transactions occurred. $($Waterway Company uses the perpetual inventory system.$)$

$1.$ Waterway paid $$320$ interest on the note payable on January $1,2022.$ The note is due December $31,2023.$

$2.$ Waterway purchased $$334,208$ of inventory on account.

$3.$ Waterway sold for $$563,200$ cash, inventory which cost $$339\mathrm{.}200.$ Waterway also collected $$36,608$ in sales taxes.

$4.$ Waterway paid $$294,400$ in accounts payable.

$5.$ Waterway paid $$21,760$ in sales taxes to the state.

$6.$ Paid other operating expenses of $$38,400.$

$7.$ On January $31,2022,$ the payroll for the month consists of salaries and wages of $$96\mathrm{.}000.$ All salaries and wages are subject to $7\mathrm{.}65\%$ FICA taxes. A total of $$11,440$ federal income taxes are withheld. The salaries and wages are paid on February $1.$

Adjustment data:

$8.$ Interest expense of $$320$ has been incurred in January on the notes payable.

$9.$ The insurance for the year $2022$ was prepaid on December $31,2021.$

$10.$ The equipment was acquired on December $31,2021,$ and will be depreciated on a straight$-$line basis over $5$ years with a $$2,560$ salvage value.

$11.$ Employer's payroll taxes include $7\mathrm{.}65\%$ FICA taxes, a $5\mathrm{.}4\%$ state unemployment tax, and an $0\mathrm{.}6\%$ federal unemployment tax.Prepare an owner's equity statement for the month ending January $31,2022.($Round answers to $0$ decimal places, e$.$g$.5,275.)$

WATERWAY COMPANY

Owner's Equity Statement

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eTextbook and Media

List of Accounts

Attempts: $0$ of $5$ used

$($c$3)$

Prepare a classified balance sheet as of January $31,2022.($List current assets in order of liquidity. Round answers to $0$ decimal places,

e$.$g$.5,275.)$

WATERWAY COMPANY

Balance Sheet

Assets