Problem 10-01A On January 1, 2022, the ledger of Cullumber Company contained these liability accounts. Accounts Payable $45,000 Sales Taxes Payable 9,100 Unearned Service Revenue 21,500 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 $5,936, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,500. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,100. 20 Sold 750 units of a new product on credit at $54 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $52,000. Withholdings related to these wages were $3,978 for Social Security (FICA), $5,686 for federal income tax, and $1,706 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. Journalize 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. Round answers to nearest whole dollar amount, e.g. 5,275.) Date Account Titles and Explanation Debit Credit choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll 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 enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amount enter a credit amount enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amount enter a credit amount (To record the interest on outstanding notes payable.) Jan. 31 enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount (To record payroll and withholding taxes.) Jan. 31 enter an account title to record employer's payroll taxes on January 31 enter a debit amount enter a credit amount enter an account title to record employer's payroll taxes on January 31 enter a debit amount enter a credit amount (To record employer’s payroll taxes.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO $enter a total amount for this subsection

Problem 10-01A On January 1, 2022, the ledger of Cullumber Company contained these liability accounts. Accounts Payable $45,000 Sales Taxes Payable 9,100 Unearned Service Revenue 21,500 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 $5,936, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,500. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,100. 20 Sold 750 units of a new product on credit at $54 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $52,000. Withholdings related to these wages were $3,978 for Social Security (FICA), $5,686 for federal income tax, and $1,706 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. Journalize 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. Round answers to nearest whole dollar amount, e.g. 5,275.) Date Account Titles and Explanation Debit Credit choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll 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 enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amount enter a credit amount enter an account title to record the interest on outstanding notes payable on January 31 enter a debit amount enter a credit amount (To record the interest on outstanding notes payable.) Jan. 31 enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount enter an account title to record payroll and withholding taxes on January 31 enter a debit amount enter a credit amount (To record payroll and withholding taxes.) Jan. 31 enter an account title to record employer's payroll taxes on January 31 enter a debit amount enter a credit amount enter an account title to record employer's payroll taxes on January 31 enter a debit amount enter a credit amount (To record employer’s payroll taxes.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO $enter a total amount for this subsection

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 10.1APR: Liability transactions The following items were selected from among the transactions completed by...

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Problem 10-01A

On January 1, 2022, the ledger of Cullumber Company contained these liability accounts.

Accounts Payable		$45,000
Sales Taxes Payable		9,100
Unearned Service Revenue		21,500

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 $5,936, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $12,500. (Credit Service Revenue.)
14		Paid state treasurer’s department for sales taxes collected in December 2021, $9,100.
20		Sold 750 units of a new product on credit at $54 per unit, plus 6% sales tax.

During January, the company’s employees earned wages of $52,000. Withholdings related to these wages were $3,978 for Social Security (FICA), $5,686 for federal income tax, and $1,706 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.

Journalize 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. Round answers to nearest whole dollar amount, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 1Jan. 5Jan. 12Jan. 14Jan. 20Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS
LINK TO TEXT	LINK TO VIDEO

Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll 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	enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amount	enter a credit amount
	enter an account title to record the interest on outstanding notes payable on January 31	enter a debit amount	enter a credit amount
	(To record the interest on outstanding notes payable.)
Jan. 31	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record payroll and withholding taxes on January 31	enter a debit amount	enter a credit amount
	(To record payroll and withholding taxes.)
Jan. 31	enter an account title to record employer's payroll taxes on January 31	enter a debit amount	enter a credit amount
	enter an account title to record employer's payroll taxes on January 31	enter a debit amount	enter a credit amount
	(To record employer’s payroll taxes.)

SHOW LIST OF ACCOUNTS
LINK TO TEXT	LINK TO VIDEO

$enter a total amount for this subsection

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