Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help!!!!! On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balance Credit Accounts Cash Accounts Receivable Inventory Land Buildings Allowance

Help!!!!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balance Credit Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 12,100 35,800 152,900 76,300 129,000 $ 2,700 10,580 27,600 299,000 156,380 $406, 100 $426,100 During January 2021, the following transactions occur January 1 Borrow $109,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in years. Payments of $2,107 are required at the end of each month for 60 months. January 4 Receive $31,900 from customers on accounts receivable. January 10 Pay cash on accounts payable, $20,000 January 15 Pay cash for salaries, $29,800. January 30 Firework sales for the month total $200,400. Sales include $65,900 for cash and $134,500 on account. The cost of the units sold is $117,000 January 31 Pay the first monthly installment of $2,107 related to the $109,080 borrowed on January 1. Round your interest calculation to the nearest dollar The following information is available on January 31, 2021 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 $26.400. b. The company estimates future uncollectible accounts. The company determines $3,900 of accounts receivable on January 31 we past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% 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 $27.000 d. Accrued income taxes at the end of January are $8,900. e. $19,368 of the long-term note payable balance will be paid over the next year 2 Jan 01 109 000 Cash Notes Payable (Long-term) 109,000 2 Jan 04 31900 Cash Accounts receivable 31 900 3 Jan 10 20,000 Accounts payable Cash 20.000 4 Jan 15 29.800 Salaries expense Cash 29.000 5 Jan 30 65 900 134.500 Cash Accounts receivable Sales revenue 200,400 117.000 6 Jan 30 Cost of goods sold Inventory 117.000 7 Jan 31 Notes Payable (Long-term) Interest expense Cash 2017 8 Jan 31 Depreciation expense Accumulated depreciation 9 Jan 31 Bad debt expense Allowance for uncollectible accounts OS 10 Jan 31 Salaries expense Salaries payable 11 Jan 31 Income tax expense Income tax payable 12 Jan 31 No Transaction Recorded General Ledger > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Notice the dropdown below that gives the options to select the unladjusted adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Adjusted Freedom Fowork Trial Balance January 31, 2020 Account Title Debit Credit $ 167.083 138,400 Cash Accounts receivable Allowance for uncollectible accounts inventory 2,700 Land 35,000 78,300 129.000 10,500 Buildings Accumulated depreciation Accounts payable Notes Payable (Long-term) Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Total 7,600 109,000 200,000 150.300 200.400 117.000 29.800 893,48315 5 805 500 Requirement General Journal General Ledger Trial Balance Indyshe Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's income statement. Select 'adjusted from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Adjusted Freedom Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 Gross profit $ 0 Total operating expenses Operating income 0 $ 0 Trial Balance Balance Sheet> Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's balance sheet. Make sure to select adjusted from the dropdom which will then populate the balances in those accounts from the adjusted trial balance. Adjusted dams Classified Balance Sheet any 31, 2023 Assets Liabilities Current Assets Current Liabilities 0 Total Current Liabilities Long-term Liabilities + Total Current Assets Tots Lisbites Nonourrent Assets Stockholders Equity Total Stockholders Equity Total Lab & Stockholders Equity 3 3 X Answer is not complete Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis calculate the ratios to the nearest 1 decimal place (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? medebt to quity ratio the company more or less leveraged than other companies (b) Calculate the times interest earned ratio. If the average times interesteamed ratio for the industry 20 times, the company more or less able to meet interest payments than other companies in the same industry? The times interest earned ratio is More is the company more or less able to meet interest payments than other companies? lower (a) Based on the ratios calculated in (a) and (b), would Freedom Fireworks be more likely to recoves higher or lower interest rate than the average borrowing rate in the industry? Balance Sheet During January 2021, the following transactions occur: January 1 Borrow $109,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,107 are required at the end of each month for 60 months. January 4 Receive $31,900 from customers on accounts receivable. January 10 Pay cash on accounts payable, $20,000. January 15 Pay cash for salaries, $29,800. January 30 Firework sales for the month total $200, 400, Sales include $65,990 for cash and $134,500 on account. The cost of the units sold is $117,000. January 31 Pay the first monthly installment of $2,107 related to the $109,889 borrowed on January 1. Round your interest calculation to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

13th Canadian Edition

1119740460, 978-1119740469

More Books

Students also viewed these Accounting questions

Question

What would you do?

Answered: 1 week ago