On January 1, 2027, Wildhorse Company's accounting records contained these liability accounts. Accounts Payable $43,600 Sales Taxes Payable 7,700 Unearned Service Revenue 20,100 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. 5 Sold merchandise for cash totaling $6,890, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,800. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2026, $7,700. 20 Sold 610 units of a new product on credit at $45 per unit, plus 6% sales tax. During January, the company's employees earned wages of $73,200. Withholdings related to these wages were $5,600 for FIC. $5,229 for federal income tax, and $1,569 for state income tax. The company owed no money related to these earnings for fede state unemployment tax. Assume that wages earned during January will be paid during February. Wages or payroll tax expense not been recorded as of January 31.
On January 1, 2027, Wildhorse Company's accounting records contained these liability accounts. Accounts Payable $43,600 Sales Taxes Payable 7,700 Unearned Service Revenue 20,100 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. 5 Sold merchandise for cash totaling $6,890, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $10,800. (Record Service Revenue.) 14 Paid state treasurer's department for sales taxes collected in December 2026, $7,700. 20 Sold 610 units of a new product on credit at $45 per unit, plus 6% sales tax. During January, the company's employees earned wages of $73,200. Withholdings related to these wages were $5,600 for FIC. $5,229 for federal income tax, and $1,569 for state income tax. The company owed no money related to these earnings for fede state unemployment tax. Assume that wages earned during January will be paid during February. Wages or payroll tax expense not been recorded as of January 31.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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