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On January 1, 2012, the ledger of Montoya Company contains the following liability accounts. Accounts Payable $53,450 Sales Taxes Payable 8,290 Unearned Service Revenue 18,520 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,196, which includes 8% sales taxes. 12 Provided services for customers who had made advance payments of $10,600. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2011 ($8,290). 20 Sold 780 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. 21 Borrowed $20,250 from DeKalb Bank on a 3-month, 8%, $20,250 note. 25 Sold merchandise for cash totaling $12,528, which includes 8% sales taxes. (
a) Journalize the January transactions.
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