General Ledger Account Cash Accounts receivable No. Date Debit Credit Balance No. Date Debit Credit Balance Jan 01 2 Jan 04 32,300 1 tt 113,000 32,300 36,600 4,300 139,200 2 Jan 04 5 Jan 30 134,900 3 Jan 10 24,000 30,200 12,500 125,500 157,800 133,800 103,600 169,900 167,715 4 Jan 15 1 1 1 5 Jan 30 66,300 7 Jan 31 2,185 Allowance for uncollectible accounts Inventory No. Date Debit Credit Balance No. Date Debit Credit Balance 3,100 4,848 153,300 34,300 9 Jan 31 1,748 6 Jan 30 119,000 Land Buildings No. Date Debit Credit Balance No. Date Debit Credit Balance Accumulated depreciation Accounts payable No. Date Debit Credit Balance No. Date Debit Credit Balance 10,900 11,785 32,000 8,000 T 8 Jan 31 885 3 Jan 10 24,000 Salaries payable Income tax payable No. Date Debit Credit Balance No. Date Debit Credit Balance 0 0 10 Jan 31 27,400 27,400 11 Jan 31 9,300 9,300 Notes Payable (Long-term) Common stock No. Date Debit Credit Balance No. Date Debit Credit Balance 0 213,000 Jan 01 113,000 113,000 111,380 7 Jan 31 1,620 Retained earnings Sales revenue No. Date Debit Credit Balance No. Date Debit Credit Balance 0 156,700 357,900 13 Jan 31 201,200 5 Jan 30 201,200 201,200 11 Jan 21 100 nag 168 and 12 bon 21 201 2nn Retained earnings Sales revenue No. Date Debit Credit Balance No. Date Debit Credit Balance 0 13 Jan 31 201,200 156,700 357,900 168,802 5 Jan 30 201,200 201,200 14 Jan 31 189,098 13 Jan 31 201,200 0 Cost of goods sold Depreciation expense No. Date Debit Credit Balance No. Date Debit Credit Balance 0 0 6 Jan 30 119,000 119,000 8 Jan 31 885 885 14 Jan 31 119,000 0 14 Jan 31 885 0 Salaries expense Bad debt expense No. Date Debit Credit Balance No. Date Debit Credit Balance 0 0 4 Jan 15 9 Jan 31 1,748 1,748 30,200 27,400 30,200 57,600 T 10 Jan 31 14 Jan 31 1,748 0 14 Jan 31 57,600 0 Interest expense Income tax expense No. Date Debit Credit Balance No. Date Debit Credit Balance 0 0 7 Jan 31 565 565 11 Jan 31 T 1 9,300 9,300 14 Jan 31 565 0 14 Jan 31 9,300 0 General Journal Trial Balance Analyze the following for Freedom Fireworks: (a) Calculate the debt to equity ratio. If the average debt to equity ratio for the industry is 1, is Freedom Fireworks more or less leveraged than other companies in the same industry? The debt to equity ratio is: Is the company more or less leveraged than other companies? Less (b) Calculate the times interest earned ratio. If the average times interest earned ratio for the industry is 20 times, is the company more or less able to meet interest payments than other companies in the same industry? The times interest earned ratio is: Is the company more or less able to meet interest payments than other companies? More (c) Based on the ratios calculated in (a) and (b), would Freedom Fireworks be more likely to receive a higher or lower interest rate than the average borrowing rate in the industry? lower Balance Sheet Analysis