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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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.)
Date
Jan. 1
Jan. 5
Jan 12 v
Jan. 14 ✓
Jan. 20
Account Titles and Explanation
Accounts Receivable
Sales Revenue
Notes Receivable
Accounts Receivable
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad386e62-4d08-47f3-8ce4-6aff4632199e%2F4d7dfdc0-ac20-43df-abe3-fe28ae7d28e0%2F1ch394_processed.png&w=3840&q=75)
Transcribed Image Text: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.)
Date
Jan. 1
Jan. 5
Jan 12 v
Jan. 14 ✓
Jan. 20
Account Titles and Explanation
Accounts Receivable
Sales Revenue
Notes Receivable
Accounts Receivable
Debit
Credit
![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
14
$56,000
8,820
16,100
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad386e62-4d08-47f3-8ce4-6aff4632199e%2F4d7dfdc0-ac20-43df-abe3-fe28ae7d28e0%2F5e38dpv_processed.png&w=3840&q=75)
Transcribed Image Text: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
14
$56,000
8,820
16,100
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.
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