On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable $44,000 Sales Taxes Payable 8,100 Unearned Service Revenue 20,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,100. 20 Sold 650 units of a new product on credit at $46 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $96,000. Withholdings related to these wages were $7,344 for Social Security (FICA), $5,086 for federal income tax, and $1,526 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. Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title to record the interest on outstanding notes payable on January 31enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record the interest on outstanding notes payable on January 31enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To record the interest on outstanding notes payable.) Jan. 31 enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To record payroll and withholding taxes.) Jan. 31 enter an account title to record employer's payroll taxes on January 31enter an account title to record employer's payroll taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record employer's payroll taxes on January 31enter an account title to record employer's payroll taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To record employer’s payroll taxes.)

On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable $44,000 Sales Taxes Payable 8,100 Unearned Service Revenue 20,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,100. 20 Sold 650 units of a new product on credit at $46 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $96,000. Withholdings related to these wages were $7,344 for Social Security (FICA), $5,086 for federal income tax, and $1,526 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. Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title to record the interest on outstanding notes payable on January 31enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record the interest on outstanding notes payable on January 31enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To record the interest on outstanding notes payable.) Jan. 31 enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To record payroll and withholding taxes.) Jan. 31 enter an account title to record employer's payroll taxes on January 31enter an account title to record employer's payroll taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record employer's payroll taxes on January 31enter an account title to record employer's payroll taxes on January 31 enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To record employer’s payroll 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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Question

On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts.

Accounts Payable		$44,000
Sales Taxes Payable		8,100
Unearned Service Revenue		20,500

During January, the following selected transactions occurred.

Jan. 1		Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note.
5		Sold merchandise for cash totaling $6,360, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.)
14		Paid state treasurer’s department for sales taxes collected in December 2021, $8,100.
20		Sold 650 units of a new product on credit at $46 per unit, plus 6% sales tax.

During January, the company’s employees earned wages of $96,000. Withholdings related to these wages were $7,344 for Social Security (FICA), $5,086 for federal income tax, and $1,526 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.

Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title to record the interest on outstanding notes payable on January 31enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record the interest on outstanding notes payable on January 31enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	(To record the interest on outstanding notes payable.)
Jan. 31	enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record payroll and withholding taxes on January 31enter an account title to record payroll and withholding taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	(To record payroll and withholding taxes.)
Jan. 31	enter an account title to record employer's payroll taxes on January 31enter an account title to record employer's payroll taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record employer's payroll taxes on January 31enter an account title to record employer's payroll taxes on January 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	(To record employer’s payroll taxes.)

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