P10-1A On January 1, 2014, the ledger of Shumway Company contains the followingliability accounts.Accounts PayableSales Taxes PayableUnearned Service RevenueE52,0005,80014,000During January, the following selected transactions occurred.Jan. 5 Sold merchandise for cash totaling E22,470, which includes 7% sales taxes.12 Provided services for customers who had made advance payments of £10,000.(Credit Service Revenue.)14 Paid revenue department for sales taxes collected in December 2013 (ES,800).20 Sold 600 units of a new product on credit at £50 per unit, plus 7% sales tax.21 Borrowed £14,000 from DeKalb Bank on a 3-month, 8%, £14,000 note.25 Sold merchandise for cash totaling £12,947, which includes 7% sales taxesInstructions(a) Journalize the January transactions.(b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint:Use one-third of a month for the DeKalb Bank note.)(c) Prepare the current liabilities section of the statement of financial position at January31, 2014. Assume no change in accounts payable.,

Current Liabilities- Current liabilities refer to obligations which the company needs to be settled…

P10-1A On January 1, 2014, the ledger of Shumway Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue E52,000 5,800 14,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling E22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of £10,000. (Credit Service Revenue.) 14 Paid revenue department for sales taxes collected in December 2013 (E5,800). 20 Sold 600 units of a new product on credit at E50 per unit, plus 7% sales tax. 21 Borrowed £14,000 from DeKalb Bank on a 3-month, 8%, £14,000 note. 25 Sold merchandise for cash totaling E12,947, which includes 7% sales taxes. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the DeKalb Bank note.) (c) Prepare the current liabilities section of the statement of financial position at January 31, 2014. Assume no change in accounts payable.,

P10-1A On January 1, 2014, the ledger of Shumway Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue E52,000 5,800 14,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling E22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of £10,000. (Credit Service Revenue.) 14 Paid revenue department for sales taxes collected in December 2013 (E5,800). 20 Sold 600 units of a new product on credit at E50 per unit, plus 7% sales tax. 21 Borrowed £14,000 from DeKalb Bank on a 3-month, 8%, £14,000 note. 25 Sold merchandise for cash totaling E12,947, which includes 7% sales taxes. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the DeKalb Bank note.) (c) Prepare the current liabilities section of the statement of financial position at January 31, 2014. Assume no change in accounts payable.,

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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