Chat with us, powered by LiveChat On January 1, 2010, the ledger of Software Company - BonPapers

On January 1, 2010, the ledger of Software Company

On January 1, 2010, the ledger of Software Company contains the following liability accounts. Accounts Payable $30,000 Sales Taxes Payable 5,000 Unearned Service Revenue 12,000During January the following selected transactions occurred. Jan. 1 Borrowed $20,000 in cash from Platteville Bank on a 4-month, 6%, $20,000 note. 5 Sold merchandise for cash totaling $9,752, which includes 6% sales taxes. 12 Provided services for customers who had made advance payments of $8,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2009, $5,000. 20 Sold 900 units of a new product on credit at $44 per unit, plus 6% sales tax. This new product is subject to a 1-year warranty. 25 Sold merchandise for cash totaling $16,536, which includes 6% 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 5% of sales of the new product.(c) Prepare the current liabilities section of the balance sheet at January 31, 2010. Assume no change in accounts payable.

Order an Excellent Paper with Bonpapers.com Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?