Question

Problem 10-1A (Part Level Submission) On January 1, 2017, the ledger of Riverbed Ltd. contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue £52,810 7,080 16,680 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling 614.980, which includes 796 sales taxes. 12 Performed services for customers who had made advance payments of 611,760. (Credit Service Revenue.) 14 Paid revenue department for sales taxes collected in December 2016 (E7,080). 20 Sold 600 units of a new product on credit at £52 per unit, plus 7% sales tax. 21 Borrowed £20,250 from DeKalb Bank on a 3-month, 6%, £20,250 note. 25 Sold merchandise for cash totaling €9,275, which includes 7% sales taxes. (a) Journalize the January transactions. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically Do not indent manually.) Date Account Titles and Explanation Debit Credit

Answer 1

Date	Account Titles & Description	Debit	Credit
5 Jan	Cash A/C	£14980
	to Sales		£14000
	to Sales tax Payable		£980
12 Jan	Unearned Service revenue a/c	£11,760
	Service Revenue		£11,760
14 Jan	Sales tax payable a/c	£7,080
	to cash/Bank		£7,080
20 Jan	Debtors A/C	£33,384
	to Sales		£31200
	to Sales tax payable		£2184
21 Jan	Cash	£20,250
	to 6%, 3 month note a/c		£20,250
25 Jan	Cash	£9,275
	to Sales		£8,668
	to Sales tax payable		£607