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(b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (c) No. Date Account Titles and Explanation 1. 2 eTextbook and Media List of Accounts Save for Later Debit Credi Attempts: 0 of 5 used Submit Answer Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payable. Lily Company Balance Sheet (Partial) $ $ On January 1, 2027, the ledger of Lily Company contains these lability accounts. Accounts Payable $55,500 8,500 Unearned Service Revenue 17,000 Sales Taxes Payable During January; these selected transactions occurred. Jan S Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue] 14 Paid state revenue department for sales taxes collected in December 2026 ($8,500). 20 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 $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $7,776, which includes 8% (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 Debit Credit

(b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (c) No. Date Account Titles and Explanation 1. 2 eTextbook and Media List of Accounts Save for Later Debit Credi Attempts: 0 of 5 used Submit Answer Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payable. Lily Company Balance Sheet (Partial) $ $ On January 1, 2027, the ledger of Lily Company contains these lability accounts. Accounts Payable $55,500 8,500 Unearned Service Revenue 17,000 Sales Taxes Payable During January; these selected transactions occurred. Jan S Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue] 14 Paid state revenue department for sales taxes collected in December 2026 ($8,500). 20 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 $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $7,776, which includes 8% (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 Debit Credit

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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(b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (c) No. Date Account Titles and Explanation 1. 2 eTextbook and Media List of Accounts Save for Later Debit Credi Attempts: 0 of 5 used Submit Answer Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payable. Lily Company Balance Sheet (Partial) $ $
Transcribed Image Text:(b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (c) No. Date Account Titles and Explanation 1. 2 eTextbook and Media List of Accounts Save for Later Debit Credi Attempts: 0 of 5 used Submit Answer Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payable. Lily Company Balance Sheet (Partial) $ $
On January 1, 2027, the ledger of Lily Company contains these lability accounts. Accounts Payable $55,500 8,500 Unearned Service Revenue 17,000 Sales Taxes Payable During January; these selected transactions occurred. Jan S Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue] 14 Paid state revenue department for sales taxes collected in December 2026 ($8,500). 20 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 $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $7,776, which includes 8% (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 Debit Credit
Transcribed Image Text:On January 1, 2027, the ledger of Lily Company contains these lability accounts. Accounts Payable $55,500 8,500 Unearned Service Revenue 17,000 Sales Taxes Payable During January; these selected transactions occurred. Jan S Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue] 14 Paid state revenue department for sales taxes collected in December 2026 ($8,500). 20 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 $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $7,776, which includes 8% (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 Debit Credit
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