Answered step by step
Verified Expert Solution
Question
1 Approved Answer
all one question thanks ! Required information [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of
all one question thanks !
Required information [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 26,800 49,600 $ 5,900 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (63, due April 1, Year 2) Common Stock Retained Earnings Totals 21,700 63,000 23,500 3,200 30, 200 67,000 52,000 26,300 $184,600 $184,600 During January Year 1, the following transactions occur. January 2 Sold gift cards totaling $11,400. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $164,000. January 15 The comapany sales for the first half of the month total $152,000. All of these sales are on account. The cost of the units sold is $82,300. January 23 Receive $127,100 from customers on accounts receivable. January 25 Pay $107,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,500. January 30 The comapany sales for the second half of the month total $160,000. Sales include $11,000 for cash and $149,000 on account. The cost of the units sold is $88,000. January 31 Pay cash for monthly salaries, $53,700. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,900 and a two-year service life. b. The company estimates future uncollectible accounts. The company determines $28,000 of accounts receivable on January 31 are past due, and 30% 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.) c. Accrued interest expense on notes payable for January. d. Accrued income taxes at the end of January are $14,700. e. By the end of January, $4,700 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 1 2. 3 4 5 > Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,900 and a two-year service life. Record the depreciation for the month of January. Note: Enter debits before credits. General Journal Debit Credit Date January 31 Record entry Clear entry View general journal Journal entry worksheet 1 2 2 3 4 5 The company estimates future uncollectible accounts. The company determines $28,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal Journal entry worksheet Accrued interest expense on notes payable for January. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal Journal entry worksheetStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started