Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 7-36 (Algo) General Ledger Exercise (L07-5, 7-6, 7-7, 7-9) On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account

image text in transcribed
image text in transcribed
Exercise 7-36 (Algo) General Ledger Exercise (L07-5, 7-6, 7-7, 7-9) On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit $ 28.500 16,200 $ 1.900 Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%. due in 2 years) Land Accounts Payable Common Stock Retired Ramings 3.000 27, 200 59,700 5.600 74.600 52.900 Total $135.000 During January 2021, the following transactions occur 1. 2. 3. 4. 5. J 6. T 7. January 2 Prova de Services to customere for ou $30.500. Jamiary 6 Provide services to customers on account. $06.400. January 15 Write oft accounts receivable as collectible $1.200 January 20 Pay cath for salaries. 337. 600 y 22 Receive an accounts receivable. $83, 800 ry 25 Pay cash on account payable $4.410. January 30 Pynth for utilities during January $10.900. The following information is available on January 31, 2021 8. At the end of January, $4.000 of accounts receivable are past due, and the company estimates that 10% of these accounts will not be collected of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $12.000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts 9. Supplies at the end of January total $660. 10. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31 11. Unpaid salaries at the end of January are $29,600. General Requirement General Trial Balance Income Charmant Balance Sheet Analysis Accounts Payable Common Stock Retained Eamings Totals 5,600 74.600 52, 900 $135,000 $ 135.000 During January 2021, the following transactions occur 1. January 2 Provide services to customers for cash. $30,500. 2. January 6 Provide services to customers on account. $86.400. 3. January 16 Write off accounts receivable as collectible, $1,200. 4. January 20 Pay cash for salaries, $37,600. 5. January 22 Receive cash on accounts receivable. $83.800. 6. January 25 Pay cash on accounts payable, $4.410. 7. January 30 Pa cash for utilities during muary, $10,900. The following information is available on January 31, 2021 8. At the end of January, $4,000 of accounts receivable are past due, and the company estimates that 10% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $12,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts. 9. Supplies at the end of January total $660. 10. Accrued interest revenue on notes receivable for January, Interest is expected to be received each December 31. 11. Unpaid salaries at the end of January are $29,600. 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 (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 adjusting entries on January 31. 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 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Federal Income Taxation In Canada

Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett

33rd Edition

1554965020, 978-1554965021

Students also viewed these Accounting questions