Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals Debit Credit $ 58,800 25,200 $ 2,300 36,408 13,200 156,000 14,900 221,000 51,400 $ 289,600 $ 289,600 During January 2024, the following transactions occur. January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,688 and a six-year service life. January 4 Pay cash on accounts payable, $9,600. January 8 Purchase additional inventory on account, $83,900. January 15 Receive cash on accounts receivable, $22,188. January 19 Pay cash for salaries, $29,900. January 28 Pay cash for January utilities, $16,600. January 30 Firework sales for January total $221,000. All of these sales are on account. The cost of the units sold is $115,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company records an adjusting entry for $3,670 for estimated future uncollectible accounts. c. The company has accrued interest on notes receivable for January. d. Unpaid salaries owed to employees at the end of January are $32.700. e. The company accrued income taxes at the end of January $9,100. 5. Prepare a classified balance sheet as of January 31, 2024. Note: Amounts to be deducted should be Indicated by a minus sign.
Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals Debit Credit $ 58,800 25,200 $ 2,300 36,408 13,200 156,000 14,900 221,000 51,400 $ 289,600 $ 289,600 During January 2024, the following transactions occur. January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,688 and a six-year service life. January 4 Pay cash on accounts payable, $9,600. January 8 Purchase additional inventory on account, $83,900. January 15 Receive cash on accounts receivable, $22,188. January 19 Pay cash for salaries, $29,900. January 28 Pay cash for January utilities, $16,600. January 30 Firework sales for January total $221,000. All of these sales are on account. The cost of the units sold is $115,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company records an adjusting entry for $3,670 for estimated future uncollectible accounts. c. The company has accrued interest on notes receivable for January. d. Unpaid salaries owed to employees at the end of January are $32.700. e. The company accrued income taxes at the end of January $9,100. 5. Prepare a classified balance sheet as of January 31, 2024. Note: Amounts to be deducted should be Indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Required Information
On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Debit
Credit
$ 58,800
25,200
Allowance for Uncollectible Accounts
$ 2,300
Inventory
36,400
Notes Receivable (5%, due in 2 years)
13,200
156,000
Common Stock
14,900
221,800
51,488
Land
Accounts Payable
Retained Earnings
Totals
$ 289,600 $ 289,600
During January 2024, the following transactions occur:
January 1 Purchase equipment for $19,600. The company estimates a residual value of $1,608 and a six-year service
life.
January 4 Pay cash on accounts payable, $9,600.
January 8 Purchase additional inventory on account, $83,980.
January 15 Receive cash on accounts receivable, $22,100.
January 19 Pay cash for salaries, $29,900.
January 28 Pay cash for January utilities, $16,500.
January 30 Firework sales for January total $221,088. All of these sales are on account. The cost of the units sold is
$115,500.
Information for adjusting entries:
a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
b. The company records an adjusting entry for $3,670 for estimated future uncollectible accounts.
c. The company has accrued interest on notes receivable for January.
d. Unpaid salaries owed to employees at the end of January are $32,700.
e. The company accrued income taxes at the end of January $9,100.
5. Prepare a classified balance sheet as of January 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.
Assets
Current Assets:
Total Current Assets
Long-term Assets:
TNT FIREWORKS
Balance Sheet
January 31, 2024
Liabilities
Current Liabilities:
0 Total Current Liabilities
Stockholder's Equity
Total Stockholders' Equity
0
Total Assets
S
0
Total Liabilities and Stockholders' Equity
S
0
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