Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $ 13,000 Credit Accounts Receivable Inventory 37,600 153,803 Land 85,300 Buildings 138,000 Allowance for Uncollectible Accounts $ 3,600 Accumulated Depreciation Accounts Payable 11,400 37,500 Common Stoc< Retained Earnings Totals 218,000 157,200 $427,700 $427,700 During January 2021, the following transactions occur: January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. 1 January Receive $32,800 from customers on accounts receivable. 4 January Pay cash on accounts payable, $29,000. 10 January Pay cash for salaries, $30,700. 15 January Firework sales for the month total $210,600. Sales include $66,300 for cash and $143,800 on account. The cost of the units sold is $121,500. 30 January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest calculation to the nearest dcllar. 31
Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $ 13,000 Credit Accounts Receivable Inventory 37,600 153,803 Land 85,300 Buildings 138,000 Allowance for Uncollectible Accounts $ 3,600 Accumulated Depreciation Accounts Payable 11,400 37,500 Common Stoc< Retained Earnings Totals 218,000 157,200 $427,700 $427,700 During January 2021, the following transactions occur: January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. 1 January Receive $32,800 from customers on accounts receivable. 4 January Pay cash on accounts payable, $29,000. 10 January Pay cash for salaries, $30,700. 15 January Firework sales for the month total $210,600. Sales include $66,300 for cash and $143,800 on account. The cost of the units sold is $121,500. 30 January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest calculation to the nearest dcllar. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.]
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:
Accounts
Cash
Debit
$ 13,000
Credit
Accounts Receivable
Inventory
37,600
153,803
Land
85,300
Buildings
138,000
Allowance for Uncollectible Accounts
$ 3,600
Accumulated Depreciation
Accounts Payable
11,400
37,500
Common Stoc<
Retained Earnings
Totals
218,000
157,200
$427,700
$427,700
During January 2021, the following transactions occur:
January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures
in 5 years. Payments of $2,281 are required at the end of each month for 60 months.
1
January Receive $32,800 from customers on accounts receivable.
4
January Pay cash on accounts payable, $29,000.
10
January Pay cash for salaries, $30,700.
15
January Firework sales for the month total $210,600. Sales include $66,300 for cash and $143,800 on account. The cost
of the units sold is $121,500.
30
January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest
calculation to the nearest dcllar.
31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4584a2b-4751-4bbb-b3b6-deae0ec5afb1%2F33352145-2092-43d0-8023-6dd67ca9850d%2Fudiojr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.]
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:
Accounts
Cash
Debit
$ 13,000
Credit
Accounts Receivable
Inventory
37,600
153,803
Land
85,300
Buildings
138,000
Allowance for Uncollectible Accounts
$ 3,600
Accumulated Depreciation
Accounts Payable
11,400
37,500
Common Stoc<
Retained Earnings
Totals
218,000
157,200
$427,700
$427,700
During January 2021, the following transactions occur:
January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures
in 5 years. Payments of $2,281 are required at the end of each month for 60 months.
1
January Receive $32,800 from customers on accounts receivable.
4
January Pay cash on accounts payable, $29,000.
10
January Pay cash for salaries, $30,700.
15
January Firework sales for the month total $210,600. Sales include $66,300 for cash and $143,800 on account. The cost
of the units sold is $121,500.
30
January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest
calculation to the nearest dcllar.
31
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education