On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit $ 11,800 35,200 152,600 73,300 126,000 The following information is available on January 31, 2024. $ 398,900 Credit $ 2,400 10,200 24,300 206,000 156,000 $ 398,900 During January 2024, the following transactions occur: January 1 Borrow $106,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,049 are required at the end of each month for 60 months. January 4 Receive $31,600 from customers on accounts receivable. January 10 Pay cash on accounts payable, $17,000. January 15 Pay cash for salaries, $29,500. January 30 Firework sales for the month total $196,200. The cost of the units sold is $115,500. January 31 Pay the first monthly installment of $2,049 related to the $106,000 borrowed on January 1. a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $24,600. b. The company estimates additional future uncollectible accounts of $2,012. c. Unpaid salaries at the end of January are $26,700. d. Accrued income taxes at the end of January are $8,600. e. The portion of Notes Payable (long-term) due within the next 12 months is reclassified as Notes Payable (current). The amount of the reclassification is $18,835. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit $ 11,800 35,200 152,600 73,300 126,000 The following information is available on January 31, 2024. $ 398,900 Credit $ 2,400 10,200 24,300 206,000 156,000 $ 398,900 During January 2024, the following transactions occur: January 1 Borrow $106,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,049 are required at the end of each month for 60 months. January 4 Receive $31,600 from customers on accounts receivable. January 10 Pay cash on accounts payable, $17,000. January 15 Pay cash for salaries, $29,500. January 30 Firework sales for the month total $196,200. The cost of the units sold is $115,500. January 31 Pay the first monthly installment of $2,049 related to the $106,000 borrowed on January 1. a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $24,600. b. The company estimates additional future uncollectible accounts of $2,012. c. Unpaid salaries at the end of January are $26,700. d. Accrued income taxes at the end of January are $8,600. e. The portion of Notes Payable (long-term) due within the next 12 months is reclassified as Notes Payable (current). The amount of the reclassification is $18,835. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts.
Inventory
Land
Buildings
Accumulated Depreciation
Accounts Payable
Common Stock
Retained Earnings
Totals
January 1
Debit
$ 11,800
35,200
During January 2024, the following transactions occur:
152,600
73,300
126,000
$ 398,900
The following information is available on January 31, 2024.
Credit
$ 2,400
10, 200
24,300
206,000
156,000
$ 398,900
Borrow $106,000 from Captive Credit Corporation. The installment note bears interest at 6%
annually and matures in 5 years. Payments of $2,049 are required at the end of each month for 60
months.
January 4 Receive $31,600 from customers on accounts receivable.
January 10 Pay cash on accounts payable, $17,000.
January 15 Pay cash for salaries, $29,500.
January 30 Firework sales for the month total $196,200. The cost of the units sold is $115,500.
January 31 Pay the first monthly installment of $2,049 related to the $106,000 borrowed on January 1.
a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was
purchased, the company estimated a service life of 10 years and a residual value of $24,600.
b. The company estimates additional future uncollectible accounts of $2,012.
c. Unpaid salaries at the end of January are $26,700.
d. Accrued income taxes at the end of January are $8,600.
e. The portion of Notes Payable (long-term) due within the next 12 months is reclassified as Notes Payable (current). The amount of the
reclassification is $18,835.
2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
Transcribed Image Text:No
1
2
اب
3
|
4
Date
January 31
January 31
January 31
January 31
Depreciation Expense
Accumulated Depreciation
Bad Debt Expense
Allowance for Uncollectible Accounts
Salaries Expense
General Journal
Salaries Payable
Income Tax Expense
Income Tax Payable
Debit
845
26,700✔
8,600
Credit
845
26,700
8,600
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