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CCLIIIII ect Overall Review On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Saved Credit Debit $ 59,100 25,800

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CCLIIIII ect Overall Review On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Saved Credit Debit $ 59,100 25,800 $ 2,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,700 16,800 159,000 15,200 224,000 55,600 $297,400 $297, 400 During January 2021, the following transactions occur. January 1 Purchase equipment for $19,900. The company estimates a residual value of $1,900 and a five-year service life. January 4 Pay cash on accounts payable, $9,900. January 8 Purchase additional inventory on account, $86,900. January 15 Receive cash on accounts receivable, $22,400. January 19 Pay cash for salaries, $30,200. January 28 Pay cash for January utilities, $16,900. January 30 Sales for January total $224,000. All of these sales are on account. The cost of the units sold is $117,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $3,400 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible Hint the lan 21 Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $3,400 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint Use the January 31 accounts receivable balance calculated in the general ledger) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33.000 e. Accrued income taxes at the end of January are $9.400. 3. Prepare an adjusted trial balance as of January 31, 2021 TNT FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit 227400 Accounts Receivable Nlowance for Uncolectible Accounts nyepory 30 300 1852 Interest Receivable The Recevabile hand 1 u nit

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