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On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Debit $102,100 35,800 152,900 76,300
On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Debit $102,100 35,800 152,900 76,300 129,000 Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Bonds Payable Discount on Bonds Payable Common Stock Retained Earnings Totals $ 2,700 10,500 27,600 129,000 30,900 209,000 148,200 $527,000 $527,000 During January 2018, 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 $2,070 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $109,000. The 5% bonds pay interest semiannually each June 30 and December 31. January 4 Receive $31,900 from customers on accounts receivable. January 10 Pay cash on accounts payable, $20,000. January 15 cash for $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 $2,070 related to the $109,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2018. 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. At the end of January, $3,900 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. No accounts were written off as uncollectible in January. c. Unpaid salaries at the end of January are $27,000. d. Accrued income taxes at the end of January are $5,900. Journal entry worksheet IIII. Record the closing entry for revenue. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Interest receivable 454 Interest payable 454 Record entry Clear entry View general journal Journal entry worksheet IIIII Record the closing entry for expenses. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet
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