On January 1, 2022, the ledger of Bramble Company contains these liability accounts. Accounts Payable Sales...
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On January 1, 2022, the ledger of Bramble Company contains these liability accounts. Accounts Payable Sales Taxes Payable $51,000 7,200 Unearned Service Revenue 16,000 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2021 ($7,200). 20 21 25 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note. Sold merchandise for cash totaling $11,556, which includes 8% sales taxes. 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.) Date Account Titles and Explanation Jan. 5 Cash Sales Revenue Sales Taxes Payable Debit 20520 Jan. 12 Unearned Service Revenue 10500 Service Revenue Jan. 14 Sales Taxes Payable Cash 7200 Jan. 20 Accounts Receivable 48600 Sales Revenue Sales Taxes Payable Jan. 21 Cash Notes Payable Jan. 25 Cash 27000 11556 Credit 19000 1520 10500 7200 45000 3600 27000 Jan. 25 Cash Sales Revenue Sales Taxes Payable 11556 10700 856 Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation 1. 2. Debit Credit On January 1, 2022, the ledger of Bramble Company contains these liability accounts. Accounts Payable Sales Taxes Payable $51,000 7,200 Unearned Service Revenue 16,000 During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2021 ($7,200). 20 21 25 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note. Sold merchandise for cash totaling $11,556, which includes 8% sales taxes. 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.) Date Account Titles and Explanation Jan. 5 Cash Sales Revenue Sales Taxes Payable Debit 20520 Jan. 12 Unearned Service Revenue 10500 Service Revenue Jan. 14 Sales Taxes Payable Cash 7200 Jan. 20 Accounts Receivable 48600 Sales Revenue Sales Taxes Payable Jan. 21 Cash Notes Payable Jan. 25 Cash 27000 11556 Credit 19000 1520 10500 7200 45000 3600 27000 Jan. 25 Cash Sales Revenue Sales Taxes Payable 11556 10700 856 Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation 1. 2. Debit Credit
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Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
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