(a) Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (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 7% of sales of the new product. (Hint: Useone-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable. Current Attempt in ProgressOn January 1, 2022, the ledger of Lily Company contains these liability accounts.Accounts PayableSales Taxes PayableUnearned Service RevenueJan. 512During January, these selected transactions occurred.142021$55,500258,50017,000Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.)Paid state revenue department for sales taxes collected in December 2021 ($8,500).Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-yearwarranty.Borrowed $29,250 from Girard Bank on a 3-month, 8%, $29,250 note.Sold merchandise for cash totaling $7,776, which includes 8% sales taxes.

DateAccountDrCr05-01-2022cash$20,520Account payable$19,000sales tax payable$1,52012-01-2022unearned…

(a) Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (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 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) ( c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable.

(a) Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (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 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) ( c) Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in accounts payable.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 9P

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Included in Windsor NV's December 31 trial balance is a note receivable of € 8,880. The note is a 4-month, 10% note dated October 1. Prepare Windsor's December 31 adjusting entry to record € 222 of accrued interest, and the February 1 journal entry to record receipt of € 9,176 from the borrower. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit >
Included in Windsor NV's December 31 trial balance is a note receivable of € 8,880. The note is a 4-month, 10% note dated October 1. Prepare Windsor's December 31 adjusting entry to record € 222 of accrued interest, and the February 1 journal entry to record receipt of € 9,176 from the borrower. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Payable 222 Interest Expense 222 Feb. 1 Cash 9176 Interest Expense 222 Interest Payable 74 Notes Receivable 8880
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