On January 1, 2022, the ledger of Pharoah Company contained these liability accounts. Accounts Payable $44,200 Sales Taxes Payable 8,300 Unearned Service Revenue 20,700 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 $6,678, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,100. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,300. 20 Sold 670 units of a new product on credit at $55 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $68,000. Withholdings related to these wages were $5,202 for Social Security (FICA), $5,093 for federal income tax, and $1,528 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) Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount, e.g. 5,275.) Date Account Titles and Explanation Debit Credit choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

On January 1, 2022, the ledger of Pharoah Company contained these liability accounts. Accounts Payable $44,200 Sales Taxes Payable 8,300 Unearned Service Revenue 20,700 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 $6,678, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,100. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,300. 20 Sold 670 units of a new product on credit at $55 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $68,000. Withholdings related to these wages were $5,202 for Social Security (FICA), $5,093 for federal income tax, and $1,528 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) Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount, e.g. 5,275.) Date Account Titles and Explanation Debit Credit choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

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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(a)

Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount

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Accounts Payable		$44,200
Sales Taxes Payable		8,300
Unearned Service Revenue		20,700

Jan. 1		Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note.
5		Sold merchandise for cash totaling $6,678, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $12,100. (Credit Service Revenue.)
14		Paid state treasurer’s department for sales taxes collected in December 2021, $8,300.
20		Sold 670 units of a new product on credit at $55 per unit, plus 6% sales tax.