Question

Problem 11-01A a-c (Video) On January 1, 2020, the ledger of Oriole Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $55,500 7,300 16,500 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 2019 ($7,300). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note. 25 Sold merchandise for cash totaling $7,560, which includes 8% sales taxes.
Please try to keep the same format!

Answer 1

Credit Debit 20,520 $ Journal entries Date | Account title and explanation Jan-05 Cash Sales revenue (20520/108%) Sales tax Payable (19000 x 8%) (To record Cash sales.) $ $ 19,000 1,520 Jan-12 Unearned Service Revenue $ 10,000 Service Revenue $ (To record Service Revenue on this Cash already received.) 10,000 $ 7,300 Jan-14 Sales tax Payable Cash (To record Sales tax of December 2019 paid.) $ 7,300 $ 48,600 Jan-20 Account receivable (45000+3600) Sales revenue (900 x 50) Sales tax Payable (45000 x 8%) (To record sales on Account.) 45,000 3,600 $ $ 22,500 Jan-21 Cash Notes Payable (To record notes payable.) $ 22,500 7,560 Jan-25 Cash Sales revenue (7,560 /108%) Sales tax Payable (7000 X 8%) (To record Cash sales.) 7,000 560

50 Adjustment entries Date Account title and explanation Debit Credit Jan-31 Interest Expense Interest payable 50 (To record Accrued Interest on note payable.) (22,500 X 8% = 1800) (Interest per month = 1800/12 =150) (150 x 1/3) $ 3,150 Jan-31 Warranty expense (45000 X 7%) Estimated Warranty Liability $ 3,150 (To record Warranty expense on New Product.)

Oriole company Balance Sheet (Partial) January 31, 2020 Current liabilities Account payable $ Sales Tax payable (7300 +1520-7300+3600+560) $ Unearned Service Revenue (16500 -10000) $ Notes Payable $ Interest payable $ Estimated Warranty Liability $ Total Current liabilities $ Please comment if you have any doubt Please give thumps up if you are satisfied with the answer 55,500 5,680 6,500 22,500 50 3,150 93,380