Prepare Current Liabilities Section Balance Sheet at January 31, 2022
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
Explanation of Relevant Transactions:
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.