Chapter 10 - Prob. A - P1 - P5. Page 10-49

School: Azusa Pacific University - Course: ACCT 512 - Subject: Accounting

2022 1-Jan Cash18,000 Notes Payable18,000 (to record 4 mon. 5% note) 5-Jan Cash6,254 Sales5,900 Sales Tax Payable354 (to record sale with 6% sales tax) 12-Jan Unearned Service Revenue10,000 Service Revenue10,000 (to record service performed) 14-Jan Sales Tax Payable6,600 Cash6,600 (to record payment of sales tax) 20-Jan Accounts Receivable25,440 Sales24,000 Sales Tax Payable1,440 (to record sale on credit with 6% sales tax) 2022 31-Jan Interest Expense75 Interest Payable75 (to record interest on note for 1 month) 31-Jan Wages Expense70,000 FICA Income Tax Payable5,355 Federal Income Tax Payable5,000 State Income Tax Payable1,500 Wages Payable58,145 (to record payroll and taxes withheld for Jan.) Jan.31Payroll Tax Expense5,355 FICA Taxes Payable5,355 (To record employer's payroll taxes Jan.) Current Liabilities Notes Payable18,000 Accounts Payable42,500 Unearned Service Revenue9,000 Sales Tax Payable1,794 Interest payable75 Wages payable58,145 FICA taxes payable10,710 Federal income tax payable5,000 State income tax payable1,500 Total current liabilities146,724 A 1-Sep Inventory12,000 Notes Payable12,000 30-Sep Interest Expense60 Interest Payable60 1-Oct Equipment16,500 Notes Payable16,500 31-Oct Interest Expense170 Interest Payable170 1-Nov Equipment34,000 Notes Payable26,000 Cash8,000 30-Nov Interest Expense300 Interest Payable300 1-Dec Notes Payable12,000 Interest Payable180 Cash12,180 31-Dec Interest Expenses240 Interest Payable240 BNotes Payable 1-Dec12,0001-Sep12,000 1-Oct16,500 1-Nov26,000 31-Dec Bal42,500 Interest Payable 1-Dec18030-Sep90 31-Oct170 30-Nov300 31-Dec240 31-Dec Bal590 Interest Expense 30-Sep60 31-Oct170 30-Nov300 31-Dec240