Q1) On jan 1 07 daniels company contained these liability accts. Accts payable 42,500 Sales tax payable 6,600 Unearned service revenue 19,000 in january: 1st borrowed 12,000 in cash from midland bank on 4 month 8% 12,000 note 5th sold merchandise for cash 6,510, that comprises 5% sales tax 12th provided services for customers who had made advanced payments of 10,000 (credit service revenues) 14th paid state treasurers department for sales tax collected dec 2006, $6,600 20th sold 500 units of new product on credit at 48$ per unit, plus 5% sales tax in january company's employees earned wages of 60,000. Withholdings related to wages were 4,590 for soc. Sec' 5,000 for Federal, and 1,500 for state income. Company owes no money related to these earnings for federal or state unemployment. Suppose that wages earned in january will be paid in february. No entry had been recorded for wages or payroll tax expense as of jan 31

a. Journalize transactions

b. Journalize adjusting entries at jan 31 for outstanding note payable and for wages expense and payroll tax expense

c. Make present liabilities section of balance sheet at jan 31 2007. Suppose no change in accounts payable.