Answered: On January 1, 2015, the ledger of…

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter9: Receivables

Section: Chapter Questions

Problem 9.6APR: Sales and notes receivable transactions The following were selected from among the transactions...

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Problem 10-1A

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

Accounts Payable		$56,350
Sales Taxes Payable		8,320
Unearned Service Revenue		15,930

During January, the following selected transactions occurred.

Jan. 5		Sold merchandise for cash totaling $15,012, which includes 8% sales taxes.
12		Performed services for customers who had made advance payments of $11,330. (Credit Service Revenue.)
14		Paid state revenue department for sales taxes collected in December 2014 ($8,320).
20		Sold 850 units of a new product on credit at $50 per unit, plus 8% sales tax.
21		Borrowed $31,500 from Girard Bank on a 3-month, 8%, $31,500 note.
25		Sold merchandise for cash totaling $9,504, which includes 8% sales taxes.

Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31

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

Accardo Company Balance Sheet (Partial) January 31, 2014
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, 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 Net Income / (Loss) 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		$

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