On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,000 48,000 $ 5,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6, due April 1, 2022) Common Stock Retained Earnings Totals 20, 900 55,000 19,500 2.400 29,400 59.000 44,000 29,500 $169,400 $169, 400 During January 2021, the following transactions occur January 2 Sold gift cards totaling 59,800. The cards are redeemable for morehandise within one year of the purchase date. January 6 Purchase additional inventory on account, $156.000. January 15 Firework sales for the first half of the month total $144,000. All of these wales are on account. The cost of the units sold in S78,300. January 23 Receive $126,300 from customers on accounts receivable, January 25 Pay 599,000 to inventory suppliers on accounts payable. January 28 Write of accounts receivable collectible, 55,700. January 30 Tirework sales for the second half of the month total $152,000. Sales include $12,000 for cash and $140,000 on account. The cost of the units sold is $84,000. January 31 Pay Cash for monthly salaries, $52,900. The following information is available on January 31 a. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,900 and a two-year service life.. b. The company estimates future uncollectible accounts. The company determines $20,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not January 31 Pay cash for monthly salaries, 552,900. The following information is available on January 31, a. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,900 and a two-year service life. b. The company estimates future uncollectible accounts. The company determines $20,000 of accounts receivable on January 31 are past due, and 30% 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. Accrued interest expense on notes payable for January d. Accrued income taxes at the end of January are $13.900. e. By the end of January, $3,900 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet KO .... O O O O 13 ... > Accrued interest expense on notes payable for January. Prepare the adjusting entry for interest
