On January 1, 2014, the ledger of Shumway Company contains the following liabili

Question

On January 1, 2014, the ledger of Shumway Company contains the following liability accounts.

Accounts Payable $52,000 Sales Taxes Payable 5,800 Unearned Service Revenue 14,000
During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2013 ($5,800). 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 taxes. On January 1, 2014, the ledger of Shumway Company contains the following liability accounts.

Accounts Payable $52,000 Sales Taxes Payable 5,800 Unearned Service Revenue 14,000
During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2013 ($5,800). 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 taxes. Date Account  Titles and Explanation Debit Credit Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 21 Jan. 25 Problem 10-1A (Part Level Submission) On January 1, 2014, the ledger of Shumway Company contains the following liability accounts.

Accounts Payable $52,000 Sales Taxes Payable 5,800 Unearned Service Revenue 14,000
During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2013 ($5,800). 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 taxes. On January 1, 2014, the ledger of Shumway Company contains the following liability accounts. During January, the following selected transactions occurred. Journalize the January transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

January 5

(DR) Cash 22,470

(CR) Sales 21,000 (22,470/107%)

(CR) Sales Taxes Payable 1,470

Jan 12

(DR) Unearned Service Revenue 10,000

(CR) Service Revenue 10,000

Jan 14

(DR) Sales Taxes Payable 5,800

(CR) Cash 5,800

Jan 20

(DR) Accounts Receivable 32,100

(CR) Sales 30,000

(CR) Sales Taxes Payable 2,100 (30,000 * 7%)

Jan 21

(DR) Cash 14,000

(CR) Notes Payable 14,000

Jan 25

(DR) Cash 12,947

(CR) 12,100 (12,947/107%)

(CR) Sales Taxes Payable 847

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