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On January 1, 2027, the ledger of Crane Company contains these liability accounts. Accounts Payable $50,000 Sales Taxes Payable 7,000 Unearned Service Revenue 15,500 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 20 Paid state revenue department for sales taxes collected in December 2026 ($7,000). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. (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.) Date Account Titles and Explanation Jan. 5 Cash Jan. 12 Notes Payable Debit Credit

On January 1, 2027, the ledger of Crane Company contains these liability accounts. Accounts Payable $50,000 Sales Taxes Payable 7,000 Unearned Service Revenue 15,500 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 20 Paid state revenue department for sales taxes collected in December 2026 ($7,000). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. (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.) Date Account Titles and Explanation Jan. 5 Cash Jan. 12 Notes Payable Debit Credit

FINANCIAL ACCOUNTING
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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On January 1, 2027, the ledger of Crane Company contains these liability accounts. Accounts Payable $50,000 Sales Taxes Payable 7,000 Unearned Service Revenue 15,500 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 20 Paid state revenue department for sales taxes collected in December 2026 ($7,000). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. (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.) Date Account Titles and Explanation Jan. 5 Cash Jan. 12 Notes Payable Debit Credit
Transcribed Image Text:On January 1, 2027, the ledger of Crane Company contains these liability accounts. Accounts Payable $50,000 Sales Taxes Payable 7,000 Unearned Service Revenue 15,500 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 20 Paid state revenue department for sales taxes collected in December 2026 ($7,000). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. (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.) Date Account Titles and Explanation Jan. 5 Cash Jan. 12 Notes Payable Debit Credit
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