On January 1, 2022, the ledger of Vaughn Company contains these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 5 12 During January, these selected transactions occurred. 14 20 21 $57,000 25 8,400 16,500 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue) Paid state revenue department for sales taxes collected in December 2021 ($8,400). 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-year warranty. Borrowed $22,500 from Girard Bank on a 3-month, 8 %, $22.500 note. Sold merchandise for cash totaling $9,288, which includes 8% sales taxes.
On January 1, 2022, the ledger of Vaughn Company contains these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue Jan. 5 12 During January, these selected transactions occurred. 14 20 21 $57,000 25 8,400 16,500 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue) Paid state revenue department for sales taxes collected in December 2021 ($8,400). 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-year warranty. Borrowed $22,500 from Girard Bank on a 3-month, 8 %, $22.500 note. Sold merchandise for cash totaling $9,288, which includes 8% sales taxes.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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![On January 1, 2022, the ledger of Vaughn Company contains these liability accounts.
Accounts Payable
Sales Taxes Payable
Unearned Service Revenue
Jan. 5
12
During January, these selected transactions occurred.
14
20
21
$57,000
25
8,400
16,500
Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue)
Paid state revenue department for sales taxes collected in December 2021 ($8,400).
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-year
warranty.
Borrowed $22,500 from Girard Bank on a 3-month, 8 %, $22.500 note.
Sold merchandise for cash totaling $9,288, which includes 8% sales taxes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8728aee7-89a8-4622-85c7-8867d7660ec0%2F4b49a25c-5cb6-4a03-b145-b4171e18bd6e%2Fszwl8qe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2022, the ledger of Vaughn Company contains these liability accounts.
Accounts Payable
Sales Taxes Payable
Unearned Service Revenue
Jan. 5
12
During January, these selected transactions occurred.
14
20
21
$57,000
25
8,400
16,500
Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue)
Paid state revenue department for sales taxes collected in December 2021 ($8,400).
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-year
warranty.
Borrowed $22,500 from Girard Bank on a 3-month, 8 %, $22.500 note.
Sold merchandise for cash totaling $9,288, which includes 8% sales taxes.
![Current Liabilities
Accounts Payable
Sales Taxes Payable
Unearned Service Revenue
Notes Payable
Interest Payable
Warranty Liability
Total Current Liabilities
Vaughn Company
Balance Sheet (Partial)
January 31, 2022
57000
8400
6000
24750
55
3150
140827](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8728aee7-89a8-4622-85c7-8867d7660ec0%2F4b49a25c-5cb6-4a03-b145-b4171e18bd6e%2F1ct7uqn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Liabilities
Accounts Payable
Sales Taxes Payable
Unearned Service Revenue
Notes Payable
Interest Payable
Warranty Liability
Total Current Liabilities
Vaughn Company
Balance Sheet (Partial)
January 31, 2022
57000
8400
6000
24750
55
3150
140827
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