Question

On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $42.900 7.000 19,400 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4- month, 5%. $18.000 note. 5 Sold merchandise for cash totaling $7,420, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,200. (Credit Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2021, $7,000. 20 Sold 540 units of a new product on credit at $47 per unit, plus 5% sales tax. During January, the company's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for Social Security (FICA), $5,064 for federal income tax, and $1,519 for state income tax. The company owed no money related to these earnings for federal or sate 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, 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 Tities and Explanation Debit Credit

Answer 1

Ansesex Duinal eutres Partieulars exed LFDebit 18000 $18000 an ToNoles payale |teing Nas poyable tor H-ons at5J 7420 Or zh-5Casl e 7000 420 To Sales ReUeuce $740xo TO Sales Taxpayahlef^7Ron6 teing od Herahaudie for cashI DY San-12 un earned service yeveuu Af la200 TO SeTViee deveuue Reing Aduauce paymeut for seruica performed] an-ASales Taz payable e To cash hieivg paid gales lar] Fan ao Accoun Receiuable h Dr $7000 26,649 DY To Sales seveuw B4ox $47 TO Sales tza payableßeseoxsi] eing sold ueo poduct ou cred&t] 25380 269 2Adiushng entres FDebi 75 csedit Partieulars Dale nrest expeuse Ak80cons T Interest payeble eing ntesest Jan31 75 n aut stauding wote Pyrd $74,000 Jana Sales aud bages enpeupas Afe Dr 5 661 4s064 To FEeA Social seaurity v p To Federal income lao payable To state Income lan payable bIs1 61756 To salaries aud payabe differey eing ecord payrollaud esk Laldig 5,661 auPay oll Taxes eapeuses Ae To FICA Socia/secury Tax Pable reig record emplyer ay oll las 5661

IVANEOE COMPANY Cpashal) Balauce shect as an si Jau eol2 Curreut Liabihhes ACCouns payable sales tax payable $7000+420+pa7000 16 89 unearned Service reveuue $ 19.400-$1020$9200 Nates payable Inleses payable FIcA Social secuiyTaa payables661+456122 Fedesal income tar peyable state Income far payable 442,900 18.000 75 5064 61756 Salaries aud coages payable Total Current Liabikites $151.525