On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances Accounts Debit Credit Cash $ 12,700 Accounts Receivable 37,000 Inventory 153,500 Land 82,300 Buildings 135,000 Allowance for Uncollectible Accounts $ 3,300 Accumulated Depreciation 11,100 Accounts Payable 34,200 Common Stock 215,000 Retained Earnings 156,900 Totals $ 420,500 $ 420,500 During January 2021, the following transactions occur January 1 Borrow $115,000 from Captive Credit Corporation The installment note bears interest at 6 annually and matures in 5 years Payments of $2,223 are required at the end of each month for 60 months January 4 Receive $32,500 from customers on accounts receivable January 10 Pay cash on accounts payable, $26,000 January 15 Pay cash for salaries, $30,400 January 30 Firework sales for the month total $210,000 Sales include $66,500 for cash and $143,500 on account The cost of the units sold is $120,000 January 31 Pay the first monthly installment of $2,223 related to the $115,000 borrowed on January 1 Round your interest calculation to the nearest dollar Exercise 9 21 Part 2 The following information is available on January 31, 2021 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 $27,000 The company estimates future uncollectible accounts The company determines $4,500 of accounts receivable on January 31 are 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 ) Unpaid salaries at the end of January are $27,600 Accrued income taxes at the end of January are $9,500 $20,434 of the long term note payable balance will be paid over the next year 2 Record the adjusting entries on January 31 for the above transactions (If no entry is required for a particular transaction event, select No Journal Entry Required in the first account field )

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On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 12,700 Accounts Receivable 37,000 Inventory

On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:

Accounts	Debit		Credit
Cash	$	12,700
Accounts Receivable		37,000
Inventory		153,500
Land		82,300
Buildings		135,000
Allowance for Uncollectible Accounts			$	3,300
Accumulated Depreciation				11,100
Accounts Payable				34,200
Common Stock				215,000
Retained Earnings				156,900
Totals	$	420,500	$	420,500

During January 2021, the following transactions occur:

January 1		Borrow $115,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,223 are required at the end of each month for 60 months.
January 4		Receive $32,500 from customers on accounts receivable.
January 10		Pay cash on accounts payable, $26,000.
January 15		Pay cash for salaries, $30,400.
January 30		Firework sales for the month total $210,000. Sales include $66,500 for cash and $143,500 on account. The cost of the units sold is $120,000.
January 31		Pay the first monthly installment of $2,223 related to the $115,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

Exercise 9-21 Part 2

The following information is available on January 31, 2021.

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 $27,000.
The company estimates future uncollectible accounts. The company determines $4,500 of accounts receivable on January 31 are 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.)
Unpaid salaries at the end of January are $27,600.
Accrued income taxes at the end of January are $9,500.
$20,434 of the long-term note payable balance will be paid over the next year.

2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)