On January 1, 2014, the ledger of Shumway Company contains the following liability accounts.
| Accounts Payable | $52,000 | |
| Sales Taxes Payable | 5,800 | |
| Unearned Service Revenue | 14,000 |
During January, the following selected transactions occurred.
| Jan. 5 | Sold merchandise for cash totaling $22,470, which includes 7% sales taxes. | |
| 12 | Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.) | |
| 14 | Paid state revenue department for sales taxes collected in December 2013 ($5,800). | |
| 20 | Sold 600 units of a new product on credit at $50 per unit, plus 7% sales tax. | |
| 21 | Borrowed $14,000 from DeKalb Bank on a 3 month, 8%, $14,000 note. | |
| 25 | Sold merchandise for cash totaling $12,947, which includes 7% sales taxes |