P$10\mathrm{.}1($LO $1,2)$ On January $1,2025,$ the ledger of Chuan$-$Kwang Luggage contains the following liability

accounts $($amounts in thousands$).$

During January, the following selected transactions occurred.

Jan. $5$ Sold merchandise for cash totaling NT$$20,520,$ which includes $8\%$ sales taxes.

$12$ Performed services for customers who had made advance payments of NT$$10,000.($Credit

Service Revenue.$)$

$14$ Paid revenue department for sales taxes collected in December $2024($NT$$7,700).$

$20$ Sold $900$ units of a new product on credit at NT$$50$ per unit, plus $8\%$ sales tax. This new

product is subject to a $1-$year warranty.

$21$ Borrowed NT$$27,000$ from First National Bank on a $3-$month, $8\%,$ NT$$27,000$ note.

$25$ Sold merchandise for cash totaling NT $$12,420,$ which includes $8\%$ sales taxes.

Instructions

a$.$ Journalize the January transactions.

b$.$ 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 First National Bank note.$)$

c$.$ Prepare the current liabilities section of the statement of financial position at January $31,2025.$

Assume no change in accounts payable.