(a) 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.) (b)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: Useone-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.) (c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable. Current Attempt in ProgressOn January 1, 2022, the ledger of Lily Company contains these liability accounts.Accounts PayableSales Taxes PayableUnearned Service RevenueJan. 512During January, these selected transactions occurred.142021$55,500258,50017,000Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.)Paid state revenue department for sales taxes collected in December 2021 ($8,500).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-yearwarranty.Borrowed $29,250 from Girard Bank on a 3-month, 8%, $29,250 note.Sold merchandise for cash totaling $7,776, which includes 8% sales taxes.

DateAccountDrCr05-01-2022cash$20,520Account payable$19,000sales tax payable$1,52012-01-2022unearned…

(a) 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.) (b) 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.) ( c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable.

(a) 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.) (b) 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.) ( c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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