On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,000 Accounts Receivable 25,600 Allowance for Uncollectible Accounts $ 2,500 Inventory Notes Receivable (5%, due in 2 years) 36,600 15,600 Land 158,000 Accounts Payable 15.100 223,000 54,200 $294,800 $294,800 Common Stock Retained Earnings Totals During January 2021, the following transactions occur: January 1Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,80o0. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Sales for January total $223,000. All of these sales are on account. The cost of the units sold is $116,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,300 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $32,900. e. Accrued income taxes at the end of January are $9,300.
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,000 Accounts Receivable 25,600 Allowance for Uncollectible Accounts $ 2,500 Inventory Notes Receivable (5%, due in 2 years) 36,600 15,600 Land 158,000 Accounts Payable 15.100 223,000 54,200 $294,800 $294,800 Common Stock Retained Earnings Totals During January 2021, the following transactions occur: January 1Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,80o0. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Sales for January total $223,000. All of these sales are on account. The cost of the units sold is $116,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,300 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $32,900. e. Accrued income taxes at the end of January are $9,300.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Journal Entry Worksheet**
Page: 1/2
**Instruction:**
Record the closing entry for revenues.
**Note:** Enter debits before credits.
---
**Table Columns:**
- **Date**
- **General Journal**
- **Debit**
- **Credit**
**Row 1:**
- **Date:** January 31, 2021
- **General Journal:** Blank
- **Debit:** Blank
- **Credit:** Blank
There are additional blank rows for further entries.
---
**Buttons:**
- **Record entry**
- **Clear entry**
- **View general journal**
Transcribed Image Text:## TNT Fireworks General Ledger and Transactions – January 2021
### General Ledger Balances (January 1, 2021)
| Accounts | Debit | Credit |
|-----------------------------------|-----------|------------|
| Cash | $ 59,000 | |
| Accounts Receivable | 25,600 | |
| Allowance for Uncollectible Accounts | | $ 2,500 |
| Inventory | 36,600 | |
| Notes Receivable (5%, due in 2 years) | 15,600 | |
| Land | 158,000 | |
| Accounts Payable | | 15,100 |
| Common Stock | | 223,000 |
| Retained Earnings | | 54,200 |
| **Totals** | $294,800 | $294,800 |
### Transactions During January 2021
1. **January 1**: Purchase of equipment for $19,800 with an estimated residual value of $1,800 and a six-year service life.
2. **January 4**: Cash paid on accounts payable, $9,800.
3. **January 8**: Purchase of additional inventory for $85,900.
4. **January 15**: Receive cash on accounts receivable, $22,300.
5. **January 19**: Pay cash for salaries, $30,100.
6. **January 28**: Pay cash for January utilities, $16,800.
7. **January 30**: Sales for January total $233,000, all on account. Cost of units sold is $116,500.
### Adjusting Entries Information
a. **Depreciation**: Calculated using the straight-line method on the equipment for January.
b. **Uncollectible Accounts**: $3,300 of accounts receivable are past due by January 31. 50% estimated uncollectible. For the remaining accounts, 2% estimated uncollectible.
c. **Accrued Interest Revenue**: On notes receivable for January.
d. **Unpaid Salaries**: At the end of January, $32,900.
e. **Accrued Income Taxes**: At the end of January, $9,300.
This information outlines financial activities and
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