n January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $23,800 Accounts Receivable 5,200 Supplies 3,100 Land 50,000 Accounts Payable $3,200 Common Stock 65,000 Retained Earnings 13,900 Totals $82,100 $82,100 During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $6,000 ($500/month). January 9 Purchase additional supplies on account, $3,500. January 13 Provide services to customers on account, $25,500. January 17 Receive cash in advance from customers for services to be provided in the future, $3,700. January 20 Pay cash for salaries, $11,500. January 22 Receive cash on accounts receivable, $24,100. January 29 Pay cash on accounts payable, $4,000. The following information is available on January 31. Rent for the month of January has expired. Supplies remaining at the end of January total $2,800. All other supplies have been used. By the end of January, $3,200 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,800. Prepare the journal entries for transactions.
n January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $23,800 Accounts Receivable 5,200 Supplies 3,100 Land 50,000 Accounts Payable $3,200 Common Stock 65,000 Retained Earnings 13,900 Totals $82,100 $82,100 During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $6,000 ($500/month). January 9 Purchase additional supplies on account, $3,500. January 13 Provide services to customers on account, $25,500. January 17 Receive cash in advance from customers for services to be provided in the future, $3,700. January 20 Pay cash for salaries, $11,500. January 22 Receive cash on accounts receivable, $24,100. January 29 Pay cash on accounts payable, $4,000. The following information is available on January 31. Rent for the month of January has expired. Supplies remaining at the end of January total $2,800. All other supplies have been used. By the end of January, $3,200 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,800. Prepare the journal entries for transactions.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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Question
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances:
| Accounts | Debit | Credit |
|---|---|---|
| Cash | $23,800 | |
| 5,200 | ||
| Supplies | 3,100 | |
| Land | 50,000 | |
| Accounts Payable | $3,200 | |
| Common Stock | 65,000 | |
| 13,900 | ||
| Totals | $82,100 | $82,100 |
During January 2024, the following transactions occur:
| January 2 | Purchase rental space for one year in advance, $6,000 ($500/month). |
|---|---|
| January 9 | Purchase additional supplies on account, $3,500. |
| January 13 | Provide services to customers on account, $25,500. |
| January 17 | Receive cash in advance from customers for services to be provided in the future, $3,700. |
| January 20 | Pay cash for salaries, $11,500. |
| January 22 | Receive cash on accounts receivable, $24,100. |
| January 29 | Pay cash on accounts payable, $4,000. |
The following information is available on January 31.
- Rent for the month of January has expired.
- Supplies remaining at the end of January total $2,800. All other supplies have been used.
- By the end of January, $3,200 of services has been provided to customers who paid in advance on January 17.
- Unpaid salaries at the end of January are $5,800.
Prepare the
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