On January 1, 2015, the ledger of Accardo Company contains the following liabili

ID: 2493813 • Letter: O

Question

On January 1, 2015, the ledger of Accardo Company contains the following liability accounts.

Accounts Payable $52,270

Sales Taxes Payable 8,250

Unearned Service Revenue 15,810

During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $18,252, which includes 8% sales taxes.

Jan 12 Performed services for customers who had made advance payments of $10,960. (Credit Service Revenue.)

Jan 14 Paid state revenue department for sales taxes collected in December 2014 ($8,250).

Jan 20 Sold 850 units of a new product on credit at $50 per unit, plus 8% sales tax.

Jan 21 Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note.

Jan 25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.

1.) Journalize the January transactions

2.) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.

3.) Prepare the current liabilities section of the balance sheet at January 31, 2015. Assume no change in accounts payable.

Accardo Company Balance Sheet (Parttial) January 31, 2014

Date Account Titles and Explanation Debit Credit Jan 5 Jan 12 Jan 14 Jan 20 Jan 21 Jan 25

On January 1, 2015, the ledger of Accardo Company contains the following liabili

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