On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts Payable $55,400 Sales Taxes Payable 9,000 Unearned Service Revenue 15,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $25,200 in cash from Apex Bank on a 3-month, 5%, $25,200 note. 5 Sold merchandise for cash totaling $6,466, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,000. 20 Sold 700 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for FICA, $5,150 for federal income tax, and $1,550 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 January transactions
On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts Payable $55,400 Sales Taxes Payable 9,000 Unearned Service Revenue 15,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $25,200 in cash from Apex Bank on a 3-month, 5%, $25,200 note. 5 Sold merchandise for cash totaling $6,466, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,000. 20 Sold 700 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for FICA, $5,150 for federal income tax, and $1,550 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 January transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2022, the ledger of Sunland Company contained these liability accounts.
Accounts Payable | $55,400 | |
Sales Taxes Payable | 9,000 | |
Unearned Service Revenue | 15,500 |
During January, the following selected transactions occurred.
Jan. 1 | Borrowed $25,200 in cash from Apex Bank on a 3-month, 5%, $25,200 note. | |
5 | Sold merchandise for cash totaling $6,466, which includes 6% sales taxes. | |
12 | Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.) | |
14 | Paid state treasurer’s department for sales taxes collected in December 2021, $9,000. | |
20 | Sold 700 units of a new product on credit at $48 per unit, plus 6% sales tax. |
During January, the company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for FICA, $5,150 for federal income tax, and $1,550 for state income tax. The company owed no money related to these earnings for federal or state
Journalize the January transactions.
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