Question

Problem 10-1A On January 1, 2017, the ledger of Crane Company contained these liability accounts. Accounts Payable $42,700 Sales Taxes Payable 6,700 Unearned Service Revenue 19,200 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 $7,314, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,100. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2016, $6,700. 20 Sold 520 units of a new product on credit at $46 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $79,400. Withholdings related to these wages were $6,074 for Social Security (FICA), $5,671 for federal income tax, and $1,701 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 enter an account title Cash enter a debit amount 18000 enter a credit amount enter an account title Notes Payable enter a debit amount enter a credit amount 18000 choose a transaction date enter an account title Cash enter a debit amount enter a credit amount enter an account title Sales enter a debit amount enter a credit amount enter an account title Sales Tax Payable enter a debit amount enter a credit amount choose a transaction date 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 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 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.

Answer 1