Wildhorse Co. Exciting Financial Activities in January 2022
What were the key liability accounts recorded in Wildhorse Co.'s ledger on January 1, 2022?
1. Accounts Payable: $53,400
2. Sales Taxes Payable: $8,580
3. Unearned Service Revenue: $16,800
Answer:
The key liability accounts recorded in Wildhorse Co.'s ledger on January 1, 2022, were Accounts Payable with a balance of $53,400, Sales Taxes Payable with a balance of $8,580, and Unearned Service Revenue with a balance of $16,800.
Wildhorse Co. started the new year with robust financial activities in January 2022. The company borrowed a significant amount of $25,200 in cash from Apex Bank, indicating potential growth or investment plans. Additionally, Wildhorse Co. engaged in sales transactions, advance service payments, and tax payments to ensure compliance and financial stability.
Furthermore, the company's employees earned wages totaling $50,000 during the month, with specific withholdings for FICA, federal income tax, and state income tax. It's impressive that Wildhorse Co. had no outstanding payments related to federal or state unemployment tax, showcasing responsible financial management.
Overall, Wildhorse Co.'s financial activities in January 2022 set a positive tone for the rest of the year. The company's diverse transactions and diligent payment practices demonstrate a commitment to financial health and sustainability.