Question
On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,900 Accounts Receivable 14,600
On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 25,900 | ||||
Accounts Receivable | 14,600 | |||||
Allowance for Uncollectible Accounts | $ | 2,800 | ||||
Supplies | 3,500 | |||||
Notes Receivable (5%, due in 2 years) | 30,000 | |||||
Land | 78,000 | |||||
Accounts Payable | 9,800 | |||||
Common Stock | 106,000 | |||||
Retained Earnings | 33,400 | |||||
Totals | $ | 152,000 | $ | 152,000 | ||
During January 2018, the following transactions occur:
January | 2 | Provide services to customers for cash, $45,100. | |
January | 6 | Provide services to customers on account, $82,400. | |
January | 15 | Write off accounts receivable as uncollectible, $2,400. | |
January | 20 | Pay cash for salaries, $32,400. | |
January | 22 | Receive cash on accounts receivable, $80,000. | |
January | 25 | Pay cash on accounts payable, $6,500. | |
January | 30 | Pay cash for utilities during January, $14,700. |
The following information is available on January 31, 2018.
At the end of January, $6,000 of accounts receivable are past due, and the company estimates that 20% 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 $30,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
Supplies at the end of January total $750.
Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
Unpaid salaries at the end of January are $34,500.
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 the adjusting entries in the 'General Journal' tab (these are shown as items 8-11). | |
3. | Review the adjusted 'Trial Balance' as of January 31, 2018, in the 'Trial Balance' tab. | |
4. | Prepare an income statement for the period ended January 31, 2018, in the 'Income Statement' tab. | |
5. | Prepare a classified balance sheet as of January 31, 2018 in the 'Balance Sheet' tab. | |
6. | Record the 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. |
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