Question

Problem 10-1A On January 1, 2017, the ledger of Accardo Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $56,800 8,000 16,200 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2016 ($8,000). 20 Sold 910 units of a new product on credit at $50 per unit, plus 8% sales tax. 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note. 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. 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.) Date Account Titles and Explanation Debit Credit

Answer 1

: x fc date B G H I date account titles and explanation debit credit $ 20,520 05 January 2017 cash sales revenue sales taxes payable (sales revenue recorded) $ 19,000 $ 1,520 Accardo Company balance sheet (partial) as at january 31, 2017 current liabilities accounts payable $ 56,800 sales taxes payable $6,080 unearned service revenue $5,200 note payable $ 24,750 interest payable $ 55 total current liabilites $ 92,885 $ 11,000 12 January 2017 unearned service revenue service revenue (service revenue recorded) $ 11,000 $ 8,000 14 January 2017 sales taxes payable cash (sales tax paid) $ 8,000 $ 49,140 20 January 2017 accounts receivable sales revenue sales taxes payable (sales revenue recorded) $ 45,500 $3,640 $ 24,750 21 January 2017 cash note payable (note payable issued) $ 24,750

x fx 25-01-2017 А D E F $ 12,420 25 January 2017 cash sales revenue sales taxes payable (sales revenue recorded) $ 11,500 $920 986283288 BE adjusting entry at January 31 for note payable $ 55 31 January 2017 interest expense interest payable (interest expense recorded) $ 55

for formulas and calculations, refer to the image below -

X V for date date account titles and explanation debit credit 20520 42740 cash sales revenue sales taxes payable (sales revenue recorded) =D4/1.08 =E5*0.08 Accardo Company balance sheet (partial) as at january 31, 2017 current liabilities accounts payable =56800 sales taxes payable =8000+E6-D13+E19+E28 unearned service revenue =16200-D9 note payable =E23 interest payable =E34 total current liabilites =SUM(H6:H10) 11000 42747 unearned service revenue service revenue (service revenue recorded) 09 8000 42749 sales taxes payable cash (sales tax paid) =D13 =E18+E19 42755 accounts receivable sales revenue sales taxes payable (sales revenue recorded) =910*50 =E18*0.08 =24750 42756 cash note payable (note payable issued) =D22

B26 X for 25-01-2017 12420 42760 cash sales revenue sales taxes payable (sales revenue recorded) =D26/1.08 =E27*0.08 adjusting entry at january 31 for note payable =24750*8%/12/3 42766 interest expense interest payable (interest expense recorded) =D33