Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Find all the journal entries (the closing journal entries too), Income statement, Balance sheet, and Analysis of 'Debt to Equity Ratio' and 'Interest Earned Ratio'.
Find all the journal entries (the closing journal entries too), Income statement, Balance sheet, and Analysis of 'Debt to Equity Ratio' and 'Interest Earned Ratio'.
Chapter Nine Homework ( Seved Help Save & Exit Submit Check my work On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit points Debit $ 12,300 36,200 153,100 78,300 131,000 eBook Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals References $ 2,900 10,700 29,800 211,000 156,500 $ 410,900 $410,900 During January 2021, the following transactions occur: January 1 Borrow $111,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,146 are required at the end of each month for 60 months. January 4 Receive $32,100 from customers on accounts receivable. January 10 Pay cash on accounts payable, $22,000. January 15 Pay cash for salaries, $30,000. January 30 Firework sales for the month total $200,00. Sales include $66,100 for cash and $134,700 on account. The cost of the units sold is $118,000. January 31 Pay the first monthly installment of $2,146 related to the $111,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 15 points eBook a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,600. b. The company estimates future uncollectible accounts. The company determines $4,100 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Unpaid salaries at the end of January are $27,200. d. Accrued income taxes at the end of January are $9,100. e. $19,723 of the long-term note payable balance will be paid over the next year. References Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheetStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started