Exercise 5-21 Complete the accounting cycle using receivable transactions (LO51, 54, 55, 57, 58) (GL)

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

Journal entry worksheet

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $36,100.
January		6		Provide services to customers on account, $73,400.
January		15		Write off accounts receivable as uncollectible, $800.
January		20		Pay cash for salaries, $31,500.
January		22		Receive cash on accounts receivable, $71,000.
January		25		Pay cash on accounts payable, $5,600.
January		30		Pay cash for utilities during January, $13,800.

The following information is available on January 31, 2021.

1. The company estimates future uncollectible accounts. The company determines $5,100 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.)
2. Supplies at the end of January total $750.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $33,600.

1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-7). 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 (these are shown as items 8-11).

3. Review the adjusted 'Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab.

4. Prepare an income statement for the period ended January 31, 2021, in the 'Income Statement' tab.

5. Prepare a classified balance sheet as of January 31, 2021 in the 'Balance Sheet' tab.

6. Record the closing entries in the 'General Journal' tab (these are shown as items 12 and 13).

7. Using the information from the requirements above, complete the 'Analysis' tab.

Credit Debit $ 24,100 13,700 $ 1,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 2,600 21,000 77,100 8,000 97,000 32,500 $138,500 $138,500 Credit Debit $ 24,100 13,700 $ 1,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 2,600 21,000 77,100 8,000 97,000 32,500 $138,500 $138,500