Prepare a classified balance sheet as of January 31, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dinesh bhai
![Exercise 9-24 (Static) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.]
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
During January 2024, the following transactions occur:
Debit
$ 11, 200
34,000
Exercise 9-24 (Static) Part 5
152,000
67,300
120,000
$ 384,500
Aposto
Credit
January 1
January 4
January 10 Pay cash on accounts payable, $11,000.
January 15 Pay cash for salaries, $28,900.
January 30 Firework sales for the month total $195,000. The cost of the units sold is $112,500.
January 31 Pay the first monthly installment of $1,980 related to the $100,000 borrowed on January 1.
Borrow $100,000 from Captive Credit Corporation. The installment note bears interest at 7% annually and
matures in 5 years. Payments of $1,980 are required at the end of each month for 60 months.
Receive $31,000 from customers on accounts receivable.
$ 1,800
9,600
17,700
200,000
155,400
$ 384,500
FREEDOM FIREWORKS
Classified Balance Sheet
January 31, 2024
5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign. Do
not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Liabilitio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb8cdc823-6bed-46cd-8022-22db71040a0e%2Fff96d0a3-bf2d-4bad-be4d-2a51522e0116%2F6xt9mt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-24 (Static) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.]
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
During January 2024, the following transactions occur:
Debit
$ 11, 200
34,000
Exercise 9-24 (Static) Part 5
152,000
67,300
120,000
$ 384,500
Aposto
Credit
January 1
January 4
January 10 Pay cash on accounts payable, $11,000.
January 15 Pay cash for salaries, $28,900.
January 30 Firework sales for the month total $195,000. The cost of the units sold is $112,500.
January 31 Pay the first monthly installment of $1,980 related to the $100,000 borrowed on January 1.
Borrow $100,000 from Captive Credit Corporation. The installment note bears interest at 7% annually and
matures in 5 years. Payments of $1,980 are required at the end of each month for 60 months.
Receive $31,000 from customers on accounts receivable.
$ 1,800
9,600
17,700
200,000
155,400
$ 384,500
FREEDOM FIREWORKS
Classified Balance Sheet
January 31, 2024
5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign. Do
not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Liabilitio
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