On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	11,600
Accounts Receivable		34,800
Inventory		152,400
Land		71,300
Buildings		124,000
Allowance for Uncollectible Accounts				$	2,200
Accumulated Depreciation					10,000
Accounts Payable					22,100
Common Stock					204,000
Retained Earnings					155,800
Totals	$	394,100		$	394,100

During January 2018, the following transactions occur:

January 1	Borrow $104,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,020 are required at the end of each month for 60 months.
January 4	Receive $31,400 from customers on accounts receivable.
January 10	Pay cash on accounts payable, $15,000.
January 15	Pay cash for salaries, $29,300.
January 30	Firework sales for the month total $195,800. Sales include $65,400 for cash and $130,400 on account. The cost of the units sold is $114,500.
January 31	Pay the first monthly installment of $2,020 related to the $104,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

The following information is available on January 31, 2018.

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 $24,400.

At the end of January, $3,400 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 2% will not be collected. No accounts were written off as uncollectible in January.

Unpaid salaries at the end of January are $26,500.

Accrued income taxes at the end of January are $8,400.

Journal entry worksheet

Prepare the adjusting entry for depreciation.

Note: Enter debits before credits.

Date	Account Title	Debit	Credit
Jan 31	Depreciation expense
	Accumulated depreciation

Prepare the closing entry for expenses.

Note: Enter debits before credit

Date	Account Title	Debit	Credit
Jan 31

Prepare the closing entry for revenue.

Date	Account Title	Debit	Credit
Jan 31

Prepare the closing entry for expenses.

Note: Enter debits before credits.

Date	Account Title	Debit	Credit
Jan 31