On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: During

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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

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During January 2021, the following transactions occur:

1. January 2 Provide services to customers for cash, $35,100.2. January 6 Provide services to customers on account, $72,400.3. January 15 Write off accounts receivable as uncollectible, $1,000.4. January 20 Pay cash for salaries, $31,400.5. January 22 Receive cash on accounts receivable, $70,000.6. January 25 Pay cash on accounts payable, $5,500.7. January 30 Pay cash for utilities during January, $13,700.

The following information is available on January 31, 2021.1. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 20% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $20,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.2. Supplies at the end of January total $700.3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.4. Unpaid salaries at the end of January are $33,500.

Required:1. Record each of the transactions listed above in the ?General Journal? tab (these are shown as items 1?7). Review the ?General Ledger? and the ?Trial Balance? tabs to see the effect of the transactions on the account balances.2. Record adjusting entries on January 31. in the ?General Journal? tab (these are shown as items 8-11).3. Review the adjusted ?Trial Balance? as of January 31, 2021, in the ?Trial Balance? tab.4. Prepare an income statement for the period ended January 31, 2021, in the ?Income Statement? tab).5. Prepare a classified balance sheet as of January 31, 2021, in the ?Balance Sheet? tab.6. Record closing entries in the ?General Journal? tab (these are shown as items 12 and 13).7. Using the information from the requirements above, complete the ?Analysis? tab.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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