Problem 10-1A (Part Level Submission) On January 1, 2017, the ledger of Blossom

Question

Problem 10-1A (Part Level Submission) On January 1, 2017, the ledger of Blossom Company contained these iability accounts Accounts Payable Sales Taxes Payable Unearned Service Revenue $42,600 6,650 19,100 During January, the following selected transactions occurred. Borrowed $18,000 in cash from Apex Bank on4-month, 596, $18,000 note Sold merchandise for cash totaling $5,300, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,600. (Credit Service Revenue.) Jan. 1 S 12 14 Paid state treasurer's department for sales taxes collected in December 2016, $6,650 20 Sold 510 units of a new product on credit at $45 per unit, plus 6% sales tax. During January, the company's employees carned wages of $70,000. Withholdings related to these wages were $5,355 for Social Security (FICA), $5,000 for federal income tax, and $1,500 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31 (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. Round answers to nearest whole dollar amount, e.g. 5,275) Date Account Tites and Explanation Debit Credit

Explanation / Answer

Date Account titles and Explanations Debit Credit 1-Jan Cash 18,000 Notes payable 18,000 5-Jan cash 5,300 sales revenue (5300/106*100) 5,000 Sales tax payable 300 12-Jan unearned service revenue 11,600 service revnue 11,600 14-Jan Sales tax payable 6,650 cash 6,650 20-Jan Account receivable 24327 sales revenue (510*45) 22950 Sales tax payable (22950*6%) 1377

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.