Marcus Smart State WileyPLUS C chegg Study Guided X C /fedigen WileypnuxCCXXM 6
ID: 2569795 • Letter: M
Question
Marcus Smart State WileyPLUS C chegg Study Guided X C /fedigen WileypnuxCCXXM 6 msandhu 157ogma * 3://edugen.wileyplus.com/edugen/student/mainfr.uni. MESSAGE PRINTER VEILIGION BACO Problem 10-1A (Part Level submission) On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $56,760 Sales Taxes Payable 7,640 Unearned Service Revenue 15,640 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $12,528, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,360. (Credit Service Revenue.) 14 Pald state revenue department for sales taxes collected in December 2014 ($7,640). 20 Sold 950 units of a new product on credit at $50 per unit, plus 8% sales tax. 21 Borrowed $27,000 from Girard Bank on a 3-month,8%, $27,000 note. 25 Sold merchandise for cash totaling $12,312, which includes 8% sales taxes. Z] Your answer is partially correct. Try again. Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 5 cash 11600 Sales Revenue 928 T sales Taxes Payable Policy 1 e 2000-2012 John Wiley & Sons, Inc. All Rights Reserved, a Division of John Wiley & Sons, Inc o e n du 9 NA RADEExplanation / Answer
Journal Entries Date Account Title and explanation Debit Credit Jan-05 Cash $12,528.00 To Merchandise ($ 12,528 * 100/108) $11,600.00 To Sales Tax payable $928.00 (Mercantile sales on cash) Unearned service Revenue $11,360.00 Jan-12 To Service Revenue Account $11,360.00 (Service earned against last month advance) Jan-14 Sales Tax Payable Account $7,640.00 To Cash $7,640.00 (Sales tax of last month is paid) Jan-20 Account Receivable $51,300.00 To Sales Account $47,500.00 To Sales Tax Payable $3,800.00 (Being sales on credit) Jan-21 Cash Account $27,000.00 To 8% Note Payable Account $27,000.00 (Being 8% note is borrowed for 3 months) Jan-25 Cash $12,312.00 To Merchnadise $11,400.00 To 8% Sales Tax Payable $912.00 (Being sales made in cash) Adjusting entry against purchase of 8% Note) Jan-31 Interest Expenses ($ 27,000 * 8% /36) $60.00 To interest Payable $60.00 (Being interest payable against note purchases)