Prepare Current Liabilities Section Balance Sheet at January 31, 2022

16 Jun 2021

What are the relevant transactions that occurred during January for Cullumber Company?

Transactions during January:

1. Borrowed $18,000 cash from Apex Bank on January 1

2. Sold merchandise for cash totaling $5,512 on January 5

3. Performed services for customers with advance payments of $11,800 on January 12

4. Paid state sales taxes of $6,900 on January 14

5. Sold new product on credit with sales taxes on January 20

1. Cullumber Company borrows $18,000 cash on a 4-month, 5% note payable on January 1.

2. Sales of merchandise for $5,512 on January 5 includes 6% sales taxes collected.

3. Services performed for customers with advance payments of $11,800 on January 12 reduce unearned service revenue.

4. Payment of state sales taxes of $6,900 on January 14 decreases sales taxes payable.

5. Sales of new product on credit with sales taxes on January 20 increase accounts receivable and sales revenue.