On January 1, 2027, the ledger of Sunland Company contains these liability accounts. Accounts Payable $53,500 Sales Taxes Payable 7,200 Unearned Service Revenue 16,500 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 $10.500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2026 ($7,200). 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 $27,000 from Girard Bank on a 3-month, 8%, $27,000 note 25 Sold merchandise for cash totaling $7,884, which includes 8% sales taxes. 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.) No. Date Account Titles and Explanation Debit Credit Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payabl
On January 1, 2027, the ledger of Sunland Company contains these liability accounts. Accounts Payable $53,500 Sales Taxes Payable 7,200 Unearned Service Revenue 16,500 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 $10.500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2026 ($7,200). 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 $27,000 from Girard Bank on a 3-month, 8%, $27,000 note 25 Sold merchandise for cash totaling $7,884, which includes 8% sales taxes. 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.) No. Date Account Titles and Explanation Debit Credit Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payabl
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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generate answers in steps with an explanation in each step and each step by step and make some good headings, explanations, and final solutions also
Transcribed Image Text:On January 1, 2027, the ledger of Sunland Company contains these liability accounts.
Accounts Payable
$53,500
Sales Taxes Payable
7,200
Unearned Service Revenue
16,500
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 $10.500. (Credit Service Revenue.)
14
Paid state revenue department for sales taxes collected in December 2026 ($7,200).
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 $27,000 from Girard Bank on a 3-month, 8%, $27,000 note
25
Sold merchandise for cash totaling $7,884, which includes 8% sales taxes.
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.)
No.
Date
Account Titles and Explanation
Debit
Credit
Prepare the current liabilities section of the balance sheet at January 31, 2027. Assume no change in accounts payabl
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