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Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1,
Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit $ 12,500 36,600 153,300 80,300 Credit 133,000 $ 3,100 10,900 32,000 213,000 156,700 $415,700 $415,700 During January 2021, the following transactions occur: Borrow $113,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,185 are required at the end of each month for 60 months. Receive $32,300 from customers on accounts receivable. Pay cash on accounts payable, $24,000. January 1 January 4 January 10 January Pay cash for salaries, $30,200. 15 30 January January 31 Firework sales for the month total $201,200. Sales include $66,300 for cash and $134,900 on account. The cost of the units sold is $119,000. Pay the first monthly installment of $2,185 related to the $113,000 borrowed on January 1. Round your interest calculation to the nearest dollar. Exercise 9-21 Part 3 3. Prepare an adiusted trial balance as of January 31. 2021.
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