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Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. SANDHILL CO. Balance Sheet (Partial) January 31, 2022 Current Liabilities Accounts Payable 44600 Sales Taxes Payable 2277 Interest Payable 75 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 Notes Payable 18000 Unearned Service Revenue 7500 Total Current Liabilities 132452 %24 %24 Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payrll 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 Interest Expense 75 Interest Payable 75 (To record the interest on outstanding notes payable.) Jan. 31 Salaries and Wages Expense 60000 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 (To record payroll and withholding taxes.) Jan. 31 (To record employer's payroll taxes.)

Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. SANDHILL CO. Balance Sheet (Partial) January 31, 2022 Current Liabilities Accounts Payable 44600 Sales Taxes Payable 2277 Interest Payable 75 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 Notes Payable 18000 Unearned Service Revenue 7500 Total Current Liabilities 132452 %24 %24 Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payrll 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 Interest Expense 75 Interest Payable 75 (To record the interest on outstanding notes payable.) Jan. 31 Salaries and Wages Expense 60000 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 (To record payroll and withholding taxes.) Jan. 31 (To record employer's payroll taxes.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts.

Accounts Payable   $44,600
Sales Taxes Payable   8,700
Unearned Service Revenue   21,100


During January, the following selected transactions occurred.

Jan. 1   Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note.
5   Sold merchandise for cash totaling $6,360, which includes 6% sales taxes.
12   Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.)
14   Paid state treasurer’s department for sales taxes collected in December 2021, $8,700.
20   Sold 710 units of a new product on credit at $54 per unit, plus 5% sales tax.


During January, the company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $5,200 for federal income tax, and $1,560 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.

Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. SANDHILL CO. Balance Sheet (Partial) January 31, 2022 Current Liabilities Accounts Payable 44600 Sales Taxes Payable 2277 Interest Payable 75 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 Notes Payable 18000 Unearned Service Revenue 7500 Total Current Liabilities 132452 %24 %24
Transcribed Image Text:Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable. SANDHILL CO. Balance Sheet (Partial) January 31, 2022 Current Liabilities Accounts Payable 44600 Sales Taxes Payable 2277 Interest Payable 75 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 Notes Payable 18000 Unearned Service Revenue 7500 Total Current Liabilities 132452 %24 %24
Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payrll 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 Interest Expense 75 Interest Payable 75 (To record the interest on outstanding notes payable.) Jan. 31 Salaries and Wages Expense 60000 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 (To record payroll and withholding taxes.) Jan. 31 (To record employer's payroll taxes.)
Transcribed Image Text:Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payrll 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 Interest Expense 75 Interest Payable 75 (To record the interest on outstanding notes payable.) Jan. 31 Salaries and Wages Expense 60000 Social security 4590 Federal Income Taxes Payable 5200 State Income Taxes Payable 1560 Salaries and Wages Payable 48650 (To record payroll and withholding taxes.) Jan. 31 (To record employer's payroll taxes.)
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