Cash 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: Accounts Debit Credit $ 26,700 Accounts Receivable 15,000 Allowance for Uncollectible Accounts $ 1,550 Supplies 3,900 Notes Receivable (6%, due in 2 years) 18,000 Land 80,300 Accounts Payable 10,550 Common Stock 98,000 Retained Earnings 33,800 Totals $143,900 $143,900 During January Year 1, the following transactions occur: January 2 Provide services to customers for cash, $49, 100. January 6 Provide services to customers on account, $86,400. January 15 Write off accounts receivable as uncollectible, $3,300. January 20 Pay cash for salaries, $32,800. January 22 Receive cash on accounts receivable, $84,000. January 25 Pay cash on accounts payable, $6,900. January 30 Pay cash for utilities during January, $15,100. 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit No 1 January 02 49,100 Cash Service Revenue 49,100 2 January 06 86,400 Accounts Receivable Service Revenue 86,400 3 3 January 15 3,300 Allowance for Uncollectible Accounts Accounts Receivable 3,300 January 20 32,800 Salaries Expense Cash 32,800 6 5 January 22 84,000 Cash Accounts Receivable 84,000 6 09 January 25 6,900 Accounts Payable Cash 6,900 7 January 30 15,100 Utilities Expense Cash 15,100 2. Record 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.) Answer is not complete. No Date General Journal Credit Debit 1,050 X 1 January 31 Bad Debt Expense Allowance for Uncollectible Accounts OO 2 January 31 2.950 Supplies Expense Supplies 2,950 3 January 31 90 Interest Receivable Interest Revenue olo 90 4 January 31 34.900 Salaries Expense Salaries Payable OO 34,900 3. Prepare an adjusted trial balance as of January 31, Year 1. Answer is complete but not entirely correct. Adjusted Trial Balance January 31, Year 1 Accounts Debit Credit Cash $ 105,000 Accounts Receivable 14,100 Allowance for Uncollectible Accounts 1,350 Interest Receivable 90 Supplies 950 Notes Receivable 18,000 Land 80,300 Accounts Payable 1,600 Salaries Payable 34,900 Common Stock 98,000 Retained Earnings 33,800 Service Revenue 135,500 Interest Revenue 90 Salaries Expense 67,700 Utilities Expense 15,100 Supplies Expense 2,950 Bad Debt Expense 1,050 Totals $ 305,240 $ 305,240 4. Prepare an income statement for the period ended January 31, Year 1. Income Statement For the year ended January 31, Year 1 Revenues: Total Revenues Expenses: Total Expenses 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amount should be indicated with by a minus sign.) Balance Sheet January 31, Year 1 Assets Liabilities Current Assets Current Liabilities: Total Current Liabilities Total Current Assets Long-term assets Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal 7. Analyze how well a company manages its receivables: a-1. Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to customers on account). (Round your final answer to 1 decimal place.) The receivables turnover ratio is a-2. If the industry average of the receivables turnover ratios for the month of January is 4.7 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? :O: More O Less Accounts Receivable at the end of January. (Round your final b-1. Calculate the ratio of Allowance for Uncollectible Accounts answer to 1 decimal place.) Allowance for Uncollectible Accounts ratio Cash 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: Accounts Debit Credit $ 26,700 Accounts Receivable 15,000 Allowance for Uncollectible Accounts $ 1,550 Supplies 3,900 Notes Receivable (6%, due in 2 years) 18,000 Land 80,300 Accounts Payable 10,550 Common Stock 98,000 Retained Earnings 33,800 Totals $143,900 $143,900 During January Year 1, the following transactions occur: January 2 Provide services to customers for cash, $49, 100. January 6 Provide services to customers on account, $86,400. January 15 Write off accounts receivable as uncollectible, $3,300. January 20 Pay cash for salaries, $32,800. January 22 Receive cash on accounts receivable, $84,000. January 25 Pay cash on accounts payable, $6,900. January 30 Pay cash for utilities during January, $15,100. 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit No 1 January 02 49,100 Cash Service Revenue 49,100 2 January 06 86,400 Accounts Receivable Service Revenue 86,400 3 3 January 15 3,300 Allowance for Uncollectible Accounts Accounts Receivable 3,300 January 20 32,800 Salaries Expense Cash 32,800 6 5 January 22 84,000 Cash Accounts Receivable 84,000 6 09 January 25 6,900 Accounts Payable Cash 6,900 7 January 30 15,100 Utilities Expense Cash 15,100 2. Record 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.) Answer is not complete. No Date General Journal Credit Debit 1,050 X 1 January 31 Bad Debt Expense Allowance for Uncollectible Accounts OO 2 January 31 2.950 Supplies Expense Supplies 2,950 3 January 31 90 Interest Receivable Interest Revenue olo 90 4 January 31 34.900 Salaries Expense Salaries Payable OO 34,900 3. Prepare an adjusted trial balance as of January 31, Year 1. Answer is complete but not entirely correct. Adjusted Trial Balance January 31, Year 1 Accounts Debit Credit Cash $ 105,000 Accounts Receivable 14,100 Allowance for Uncollectible Accounts 1,350 Interest Receivable 90 Supplies 950 Notes Receivable 18,000 Land 80,300 Accounts Payable 1,600 Salaries Payable 34,900 Common Stock 98,000 Retained Earnings 33,800 Service Revenue 135,500 Interest Revenue 90 Salaries Expense 67,700 Utilities Expense 15,100 Supplies Expense 2,950 Bad Debt Expense 1,050 Totals $ 305,240 $ 305,240 4. Prepare an income statement for the period ended January 31, Year 1. Income Statement For the year ended January 31, Year 1 Revenues: Total Revenues Expenses: Total Expenses 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amount should be indicated with by a minus sign.) Balance Sheet January 31, Year 1 Assets Liabilities Current Assets Current Liabilities: Total Current Liabilities Total Current Assets Long-term assets Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal 7. Analyze how well a company manages its receivables: a-1. Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to customers on account). (Round your final answer to 1 decimal place.) The receivables turnover ratio is a-2. If the industry average of the receivables turnover ratios for the month of January is 4.7 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? :O: More O Less Accounts Receivable at the end of January. (Round your final b-1. Calculate the ratio of Allowance for Uncollectible Accounts answer to 1 decimal place.) Allowance for Uncollectible Accounts ratio