Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO T
ID: 2469528 • Letter: D
Question
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
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Date
Account Titles and Explanation
Debit
Credit
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HIATT COMPANY
Balance Sheet (Partial)
January 31, 2014
Accounts Payable $49,070 Sales Taxes Payable 6,881 Unearned Service Revenue 26,040
During January, the following selected transactions occurred.
Jan. 1 Borrowed $21,840 in cash from Premier Bank on a 4-month, 5%, $21,840 note. 5 Sold merchandise for cash totaling $5,830, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $17,108. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2013, $6,881. 20 Sold 400 units of a new product on credit at $47 per unit, plus 6% sales tax.
During January, the company’s employees earned wages of $71,310. Withholdings related to these wages were $5,455 for Social Security (FICA), $5,094 for federal income tax, and $1,528 for state income tax. The company owed no money related to these earnings for federal or state 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.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31
Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31
Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31
Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31
Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31
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Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Jan. 31 (To record the interest on outstanding notes payable.) Jan. 31 (To record payroll and withholding taxes.) Jan. 31 (To record employer’s payroll taxes.)SHOW LIST OF ACCOUNTS
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Prepare the current liabilities section of the balance sheet at January 31, 2014. Assume no change in Accounts Payable.HIATT COMPANY
Balance Sheet (Partial)
January 31, 2014
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$
Current Assets Current Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Revenues Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Stockholders' Equity
$
Explanation / Answer
Jan. 1 Borrowed $21,840 in cash from Midland Bank on a 4-month 5%, $21,840 note.
Dr Cash 21,840
Cr Notes Payable 21,840
Jan. 5 Sold merchandise for cash totaling $5,830, which includes 6% sales taxes.
Dr Cash 5,830
Cr Sales 5,500
Cr Sales Tax Payable 350
Jan. 12 Performed services for customers who had made advance payments of $17,108. (Credit Service Revenue)
Dr Unearned Service Revenue 17,108
Cr Service Revenue 17,108
Jan. 14 Paid state treasurer’s department for sales taxes collected in December 2013, $6,881.
Dr Sales Tax Payable 6,881
Cr Cash 6,881
Jan. 20 Sold 400 units of a new product on credit at $47 per unit, plus 6% sales tax.
Dr Accounts Receivable 18,880
Cr Sales 17,672
Cr Sales Tax Payable 1,128
Journalize the adjusting entries at January 31 for the outstanding notes payable and for wages expense and payroll tax expense.
Dr Interest Expense 102
Cr Interest on Notes Payable 102
Dr Wages Expense 77,470
Cr Employee Social Security (FICA) Tax Payable 5,926
Cr Employee Federal Income Tax Payable 5,539
Cr Employee State Income Tax Payable 1,549
Cr Wages Payable 64,456
Dr Payroll Tax Expense 5,926
Cr Social Security Tax Payable 5,926
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