Problem 10-1A (Part Level Submission) On January 1, 2017, the ledger of Sunland Company contained these liability accounts. Accounts Payable $43,300 Sales Taxes Payable 7,000 Unearned Service Revenue 19,800 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. Sold merchandise for cash totaling $5,512, which includes 6% sales taxes Performed services for customers who had made advance payments of $11,800. (Credit Service Revenue) 14 Paid state treasurer's department for sales taxes collected in December 2016, $7,000. 20 Sold 580 units of a new product on credit at $48 per unit, plus 6% sales tax, During January, the company's employees earned wages of $70,800. Withholdings related to these wages were $5,416 for Social Security (FICA), 45,057 for federal income tax, and $1,517 for state income tax. The company owed no money related to these camnings 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, 5 12 Date Account Titles and Explanation Debit Credit Jan. 31 Interest Expense 75 Interest Payable 75 70800 5416 (To record the interest on outstanding notes payable.) Jan 31 Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Salaries and Wages Payable (To record payroll and withholding taxes.) 5057 1512 58810 Jan. 31 (To record employer's payroll taxes.)