Do not give answer in image formate 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 accoutitles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)No.12DateJan. 31 VJan. 31 VAccount Titles and ExplanationInterest ExpenseInterest PayableWarranty ExpenseWarranty Llability- Your answer is partially correct.Current LiabilitlesAccounts PayableSales Taxes PayableNotes PayablePrepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable.Crane CompanyBalance Sheet (Partial)Unearned Service RevenueInterest PayableWarranty LiabilityDebitTotal Current LiabilitiesJanuary 31, 2022577.50283.50Credit577.50283.5069$52,000 On January 1, 2022, the ledger of Crane Company contains these liability accounts.Accounts PayableSales Taxes PayableUnearned Service RevenueDuring January, these selected transactions occurred.Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.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 2021 ($7,400).121420$52,0007,40017,0002125Sold 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 $24,750 from Girard Bank on a 3-month, 8%, $24.750 note.Sold merchandise for cash totaling $8,208, which includes 8% sales taxes.

Current liabilities are debts or obligations that must be paid off by a business within a year. They…

On January 1, 2022, the ledger of Crane Company contains these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, these selected transactions occurred. Jan.5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 14 20 $52,000 7,400 17,000 21 25 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 2021 ($7,400). 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 $24,750 from Girard Bank on a 3-month, 8%, $24,750 note. Sold merchandise for cash totaling $8,208, which includes 8% sales taxes.

On January 1, 2022, the ledger of Crane Company contains these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, these selected transactions occurred. Jan.5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 14 20 $52,000 7,400 17,000 21 25 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 2021 ($7,400). 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 $24,750 from Girard Bank on a 3-month, 8%, $24,750 note. Sold merchandise for cash totaling $8,208, which includes 8% sales taxes.

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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