On January 1, 2022, the ledger of Whispering Winds Corp. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, the following selected transactions occurred. Jan. 1 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 $6,254, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $8,820. Sold 500 units of a new product on credit at $48 per unit, plus 6% sales tax. 5 12 $56,000 8,820 16,100 14 20 During January, the company's employees earned wages of $68,000. Withholdings related to these wages were $5,202 for FICA, $4,850 for federal income tax, and $1,450 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.

On January 1, 2022, the ledger of Whispering Winds Corp. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, the following selected transactions occurred. Jan. 1 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 $6,254, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $8,820. Sold 500 units of a new product on credit at $48 per unit, plus 6% sales tax. 5 12 $56,000 8,820 16,100 14 20 During January, the company's employees earned wages of $68,000. Withholdings related to these wages were $5,202 for FICA, $4,850 for federal income tax, and $1,450 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.

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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