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 $ 13,000 Credit 37,600 $ 3,600 153,800 85,300 138,000 11,400 37,500 218,000 157,200 $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 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. January 4 Receive $32,800 from customers on accounts receivable. January 10 Pay cash on accounts payable, $29,000. January 15 Pay cash for salaries, $30,700. January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500. January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Exercise 9-24 (Algo) Part 2 The following information is available on January 31, 2024. . 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 $25,800. . The company estimates additional future uncollectible accounts of $3,114. . Unpaid salaries at the end of January are $27,900. . Accrued income taxes at the end of January are $9,800. . 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 $20,967. 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 $ 13,000 Credit 37,600 $ 3,600 153,800 85,300 138,000 11,400 37,500 218,000 157,200 $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 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. January 4 Receive $32,800 from customers on accounts receivable. January 10 Pay cash on accounts payable, $29,000. January 15 Pay cash for salaries, $30,700. January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500. January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Exercise 9-24 (Algo) Part 2 The following information is available on January 31, 2024. . 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 $25,800. . The company estimates additional future uncollectible accounts of $3,114. . Unpaid salaries at the end of January are $27,900. . Accrued income taxes at the end of January are $9,800. . 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 $20,967. 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
Related questions
Question
Meman
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
Debit
$ 13,000
Credit
37,600
$ 3,600
153,800
85,300
138,000
11,400
37,500
218,000
157,200
$ 427,700
$ 427,700
During January 2024, the following transactions occur:
January 1 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.
January 4 Receive $32,800 from customers on accounts receivable.
January 10 Pay cash on accounts payable, $29,000.
January 15 Pay cash for salaries, $30,700.
January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500.
January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1.
Exercise 9-24 (Algo) Part 2
The following information is available on January 31, 2024.
. 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 $25,800.
. The company estimates additional future uncollectible accounts of $3,114.
. Unpaid salaries at the end of January are $27,900.
. Accrued income taxes at the end of January are $9,800.
. 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 $20,967.
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.)
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