Chapter 5.3 Homework Saved 15 The general ledger of Pop's Fireworks includes the following account balances in 2021: Credit Debit $ 24,000 48,500 $ 5,000 points 10,900 38,000 99,000 03:14:51 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (8%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Service Revenue Salaries Expense Utilities Expense Supplies Expense Totals 15,100 162,000 31,300 127,600 eBook 72,300 28,400 19,900 $ 341,000 $341,000 Print In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: References June 3 Provide additional services on account for $21,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $12,000. November 15 Write off customer accounts of $7,100 as uncollectible. The following information is available on December 31. a. Estimate that 10% of the balance of accounts receivable (after the transactions listed above) will not be collected. b. Accrue interest on the note receivable of $38,000, which was accepted on October 1, 2021. Interest is due each September 30. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab. 3. Review the adjusted 'Trial Balance' as of December 31, 2021, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. 7. Using the information from the requirements above, complete the 'Analysis' tab. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (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 estimate of future bad debts. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2021 Bad Debt Expense Allowance for Uncollectible Accounts Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (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 interest accrued on note receivable. Note: Enter debits before credits Debit Credit Date General Journal Dec 31, 2021 Interest Receivable Interest Revenue Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (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 closure of revenue accounts. Note: Enter debits before credits Debit Credit Date General Journal Dec 31, 2021 Service Revenue Interest Revenue Retained Earnings Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (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 closure of expense accounts. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2021 Retained Earnings Sales Discounts Salaries Expense Utilities Expense Supplies Expense Bad Debt Expense Record entry Clear entry View general journal June 3 provide additional services on account for $21,000. All services on account include terms 2/10, n/30. June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $12,000. November 15 Write off customer accounts of $7,100 as uncollectible. The following information is available on December 31. a. Estimate that 10% of the balance of accounts receivable (after the transactions listed above) will not be collected. b. Accrue interest on the note receivable of $38,000, which was accepted on October 1, 2021. Interest is due each September 30. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Post-closing Pop's Fireworks Income Statement For Month Ended December 31, 2021 Revenue: 0 0 0 0 Total Revenue $ 0 Expenses: Total Expenses 0 $ 0 111C LUS LUMELD WELC June ONCLEVELADA 11 UIL CUS LUIELS WILI 10 uay UL LITE SELVILES weiny PLUV zueu ull account. originally charged $12,000. November 15 Write off customer accounts of $7,100 as uncollectible. The following information is available on December 31. a. Estimate that 10% of the balance of accounts receivable (after the transactions listed above) will not be collected. b. Accrue interest on the note receivable of $38,000, which was accepted on October 1, 2021. Interest is due each September 30. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Post-closing Pop's Fireworks Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: $ 0 0 0 0 0 Total Current Liabilities 0 Total Current Assets 0 Total Liabilities 0 Long-term assets: Stockholders' Equity 0 0 0 Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity Total Assets $ $ Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements in the previous tabs, complete the 'Analysis' tab. Analyze the following information: (a) By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021? Bad Debt Expense (b) What is the ending balance of Allowance for Uncollectible Accounts? Ending Balance of Allowance for Uncollectible Accounts (c) What amount of cash is expected to be collected from accounts receivable? Amount expected to be collected