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1. Record each of the transactions listed above in the 'General Journal' 2. Record the adjusting entries in the 'General Journal' . 3. Review the
1. Record each of the transactions listed above in the 'General Journal' 2. Record the adjusting entries in the 'General Journal' . 3. Review the adjusted 'Trial Balance' as of January 31, 2021 4. Prepare an income statement for the period ended January 31, 2021 5. Prepare a classified balance sheet as of January 31, 2021
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Credit Debit $ 25,700 14,500 $ 2,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 3,400 29,000 77,900 9,600 105,000 33,300 $150,500 $150,500 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $44,100. January 6 Provide services to customers on account, $81,400. January 15 Write off accounts receivable as uncollectible, $2,200. January 20 Pay cash for salaries, $32,300. January 22 Receive cash on accounts receivable, $79,000. January 25 Pay cash on accounts payable, $6,400. January 30 Pay cash for utilities during January, $14,600. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $5,900 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) b. Supplies at the end of January total $700. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. d. Unpaid salaries at the end of January are $34,400Step by Step Solution
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