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On January 1, 2017, Blossom Company's accounting records contained these liability accounts. Accounts Payable $44,800 Sales...

On January 1, 2017, Blossom Company's accounting records contained these liability accounts.

Accounts Payable		$44,800
Sales Taxes Payable		7,750
Unearned Service Revenue		21,300

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 $6,466, which includes 6% sales taxes.
12		Performed services for customers who had made advance payments of $13,800. (Record Service Revenue.)
14		Paid state treasurer’s department for sales taxes collected in December 2016, $7,750.
20		Sold 730 units of a new product on credit at $45 per unit, plus 6% sales tax.

During January, the company’s employees earned wages of $78,300. Withholdings related to these wages were $5,990 for Social Security (FICA), $5,593 for federal income tax, and $1,678 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. Wages or payroll tax expense have not been recorded as of January 31.

Cash

Accts. Rec.

Notes Pay.

Acct. Pay.

Salaries & Wages Pay.

Unearned Serv. Rev.

Sales Taxes Pay.

Interest Pay.

FICA Taxes Pay.

Fed. Inc. Taxes Pay.

St. Inc. Taxes Pay.

State Unemp. Taxes Pay.

Common Stock

Revenue

Expense

Dividend

Bal

Jan 1

Jan 5

Jan 12

Jan 14

Jan 20 Adj.

Jan 31

Bal

Solutions

Expert Solution

ekkarill92 answered 7 months ago

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