The preparation of the journal entries is as follows:
<h3>Journal Entries for January Transactions:</h3>Date Account Titles and Explanation Debit Credit
Jan. 1, 2022: Cash $518,000
Notes Payable $518,000
- (To record borrowing on notes payable for 4 months at 5%.)
Jan. 5, 2022: Cash $5,936
Sales Taxes Payable $336
Sales Revenue $5,600
- (To record the sale of merchandise for cash.)
Jan.. 12, 2022: Unearned Service Revenue $11,700
Service Revenue $11,7004
- (To record the performance of services for customers.)
Jan. 14, 2022: Sales Taxes Payable $8,200
Cash $8,200
- (To record the payment of sales taxes collected in December.)
Jan. 20, 2022: Accounts Receivable $384,780
Sales Taxes Payable $21,780
Sales Revenue $363,000
- (To record the sale of 660 units at $550 per unit, plus 6% sales tax.)
Date Account Titles and Explanation Debit Credit
Jan. 31, 2022: Interest Expense $2,158
Interest Payable $2,158
- (To record the interest on outstanding notes payable.)
Jan. 31, 2022: Wages Expense $98,000
Wages Payable $98,000
- (To record the wages expenses accrued.)
Jan. 31, 2022: Wages Expense $14,295
Payroll Taxes Payable $14,295
- (To record payroll and withholding taxes.)
Jan. 31, 2022: Payroll Taxes Expense $7,497
Payroll Taxes Payable $7,497
- (To record employer's payroll taxes.)
2. The preparation of the current liabilities section of the balance sheet at January 31, 2022, is as follows:
<h3>Liability Accounts:</h3>Accounts Payable $44,100
Sales Taxes Payable 22,116
Unearned Service Revenue 8,900
Notes Payable 518,000
Wages Payable 98,000
Payroll Taxes Payable 21,792
Interest Payable 2,158
Total current liabilities $715,066
<h3>Transactions Analysis:</h3>Liability Accounts:
Accounts Payable $44,100
Sales Taxes Payable 8,200
Unearned Service Revenue 20,600
Jan. 1, 2022: Cash $518,000 Notes Payable $518,000 4-month, 5%
Jan. 5, 2022: Cash $5,936 Sales Taxes Payable $336 Sales Revenue $5,600
Jan.. 12, 2022: Unearned Service Revenue $11,700 Service Revenue $11,700
Jan. 14, 2022: Sales Taxes Payable $8,200 Cash $8,200
Jan. 20, 2022: Accounts Receivable $384,780 Sales Taxes Payable $21,780 Sales Revenue $363,000
Jan. 31, 2022: Wages Expense $98,000 Wages Payable $98,000
Jan. 31, 2022: Wages Expense $14,295 Payroll Taxes Payable $14,295
Jan. 31, 2022: Payroll Taxes Expense $7,497 Payroll Taxes Payable $7,497
Jan. 31, 2022: Interest Expense $2,158 Interest Payable $2,158
<h3>Liability Accounts:</h3>Accounts Payable $44,100
Sales Taxes Payable 22,116 (8,200 + 336 -8,200 + 21,780)
Unearned Service Revenue 8,900 (20,600 - 11,700)
Notes Payable $518,000
Wages Payable $98,000
Payroll Taxes Payable $21,792 ($14,295 + 7,497)
Interest Payable $2,158
Learn more about journalizing sales transactions at brainly.com/question/17201601
#SPJ1
