Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS No. Date
ID: 2588888 • Letter: D
Question
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
No.
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
SHOW LIST OF ACCOUNTS
On January 1, 2017, the ledger of Accardo Company contains the following liability accounts.Accounts Payable $51,000 Sales Taxes Payable 8,500 Unearned Service Revenue 16,000
During January, the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $21,276, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2016 ($8,500). 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 $22,500 from Girard Bank on a 3-month, 8%, $22,500 note. 25 Sold merchandise for cash totaling $12,312, which includes 8% sales taxes.
Explanation / Answer
Date
Accounts titles and explanation
Debit
Credit
Jan-05
Cash
21276
Sales revenue (21276*100/108)
19700
Sales tax payable
1576
Jan-12
Unearned service revenue
10000
Service revenue
10000
Jan-14
Sales tax payable
8500
cash
8500
Jan-20
Accounts receivable
48600
Sales revenue (48600*100/108)
45000
Sales tax payable
3600
Jan-21
Cash
22500
Notes Payable
22500
Jan-25
cash
12312
Sales revenue (12312*100/108)
11400
sales tax payable
912
Date
Accounts titles and explanation
Debit
Credit
31-Jan
Interest expense
50
interest Payable
50
(22500*8%*1/12*1/3)
31-Jan
warranty expense
3150
warranty liability
3150
(45000*7%)
Current Liabilities
working
$
Unearned service revenue
(16000-10000)
6000
Accounts Payable
52000
Notes Payable
22500
Accounts Payable
51000
Sales tax Payable
(1576+3600+912)
6088
Warranty Liability
3150
Interest Payable
50
140788
Date
Accounts titles and explanation
Debit
Credit
Jan-05
Cash
21276
Sales revenue (21276*100/108)
19700
Sales tax payable
1576
Jan-12
Unearned service revenue
10000
Service revenue
10000
Jan-14
Sales tax payable
8500
cash
8500
Jan-20
Accounts receivable
48600
Sales revenue (48600*100/108)
45000
Sales tax payable
3600
Jan-21
Cash
22500
Notes Payable
22500
Jan-25
cash
12312
Sales revenue (12312*100/108)
11400
sales tax payable
912
Date
Accounts titles and explanation
Debit
Credit
31-Jan
Interest expense
50
interest Payable
50
(22500*8%*1/12*1/3)
31-Jan
warranty expense
3150
warranty liability
3150
(45000*7%)
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