On January 1, 2020, the ledger of Sheridan Luggage contains the following liability accounts (amounts in thousands).Accounts Payable NT$56,000Sales Taxes Payable 8,700Unearned Service Revenue 16,500During January, the following selected transactions occurred.Jan. 5 Sold merchandise for cash totaling NT$20,520, which includes 8% sales taxes.12 Performed services for customers who had made advance payments of NT$12,000. (Credit Service Revenue.)14 Paid revenue department for sales taxes collected in December 2019 (NT$8,700).20 Sold 900 units of a new product on credit at NT$50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty.21 Borrowed NT$29,250 from First National Bank on a 3-month, 8%, NT$29,250 note.25 Sold merchandise for cash totaling NT$10,368, which includes 8% sales taxes.ournalize 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer) Journal Date Account Titles and Explanation Debit Credit Jan'5 Cash…

Answered: On January 1, 2020, the ledger of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PA: Consider the following situations and determine (1) which type of liability should be recognized...

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On January 1, 2020, the ledger of Sheridan Luggage contains the following liability accounts (amounts in thousands).

Accounts Payable		NT$56,000
Sales Taxes Payable		8,700
Unearned Service Revenue		16,500

During January, the following selected transactions occurred.

Jan. 5		Sold merchandise for cash totaling NT$20,520, which includes 8% sales taxes.
12		Performed services for customers who had made advance payments of NT$12,000. (Credit Service Revenue.)
14		Paid revenue department for sales taxes collected in December 2019 (NT$8,700).
20		Sold 900 units of a new product on credit at NT$50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty.
21		Borrowed NT$29,250 from First National Bank on a 3-month, 8%, NT$29,250 note.
25		Sold merchandise for cash totaling NT$10,368, which includes 8% sales taxes.

ournalize 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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