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On January 1, 2022, the ledger of Blossom Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 1 During January, the following selected transactions occurred. 5 12 (a) 14 20 $51,100 7,080 16,400 Borrowed $22,800 in cash from Apex Bank on a 4-month, 5%, $22,800 note. Interest will be paid at maturity. Sold merchandise for cash totaling $7.526, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $7,080. Sold 300 units of a new product on credit at $48 per unit, plus 6% sales tax. 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 $1,300 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. A Date Journalize the January transactions. (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 O for the amounts) Account Titles and Explanation Debit Credit

On January 1, 2022, the ledger of Blossom Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 1 During January, the following selected transactions occurred. 5 12 (a) 14 20 $51,100 7,080 16,400 Borrowed $22,800 in cash from Apex Bank on a 4-month, 5%, $22,800 note. Interest will be paid at maturity. Sold merchandise for cash totaling $7.526, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $7,080. Sold 300 units of a new product on credit at $48 per unit, plus 6% sales tax. 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 $1,300 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. A Date Journalize the January transactions. (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 O for the amounts) Account Titles and Explanation Debit Credit

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter18: Acquiring Capital For Growth And Development
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On January 1, 2022, the ledger of Blossom Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 1 During January, the following selected transactions occurred. 5 12 (a) 14 20 $51,100 7,080 16,400 Borrowed $22,800 in cash from Apex Bank on a 4-month, 5%, $22,800 note. Interest will be paid at maturity. Sold merchandise for cash totaling $7.526, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $7,080. Sold 300 units of a new product on credit at $48 per unit, plus 6% sales tax. 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 $1,300 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. A Date Journalize the January transactions. (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 O for the amounts) Account Titles and Explanation Debit Credit
Transcribed Image Text:On January 1, 2022, the ledger of Blossom Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 1 During January, the following selected transactions occurred. 5 12 (a) 14 20 $51,100 7,080 16,400 Borrowed $22,800 in cash from Apex Bank on a 4-month, 5%, $22,800 note. Interest will be paid at maturity. Sold merchandise for cash totaling $7.526, which includes 6% sales taxes. Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $7,080. Sold 300 units of a new product on credit at $48 per unit, plus 6% sales tax. 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 $1,300 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. A Date Journalize the January transactions. (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 O for the amounts) Account Titles and Explanation Debit Credit
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