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On January 1, 2024, 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 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 During January 2024, the following transactions occur: January 1 Purchase 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, $9,800. 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 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $ 116,500. The following information is available on January 31, 2024: a.) Depreciation on the equipment for the month of January is calculated using the straight-line method. The company records an adjusting entry for $3,610 for estimated future uncollectible accounts. The company has accrued interest on notes receivable for January. Unpaid salaries owed to employees at the end of January are $32,900. The company accrued income taxes at the end of January $9,300.

On January 1, 2024, 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 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 During January 2024, the following transactions occur: January 1 Purchase 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, $9,800. 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 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $ 116,500. The following information is available on January 31, 2024: a.) Depreciation on the equipment for the month of January is calculated using the straight-line method. The company records an adjusting entry for $3,610 for estimated future uncollectible accounts. The company has accrued interest on notes receivable for January. Unpaid salaries owed to employees at the end of January are $32,900. The company accrued income taxes at the end of January $9,300.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...
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On January 1, 2024, 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 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 During January 2024, the following transactions occur: January 1 Purchase 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, $9,800. 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 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $ 116,500. The following information is available on January 31, 2024: a.) Depreciation on the equipment for the month of January is calculated using the straight-line method. The company records an adjusting entry for $3,610 for estimated future uncollectible accounts. The company has accrued interest on notes receivable for January. Unpaid salaries owed to employees at the end of January are $32,900. The company accrued income taxes at the end of January $9,300.
Transcribed Image Text:On January 1, 2024, 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 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 During January 2024, the following transactions occur: January 1 Purchase 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, $9,800. 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 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $ 116,500. The following information is available on January 31, 2024: a.) Depreciation on the equipment for the month of January is calculated using the straight-line method. The company records an adjusting entry for $3,610 for estimated future uncollectible accounts. The company has accrued interest on notes receivable for January. Unpaid salaries owed to employees at the end of January are $32,900. The company accrued income taxes at the end of January $9,300.
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