On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit points Debit $ 12,400 36,400 153,200 79,300 132,000 Skipped Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals eBook $ 3,000 10,800 30,900 212,000 156,600 $413,300 References $413,300 During January 2021, the following transactions occur: January 1 Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. January 4 Receive $32, 200 from customers on accounts receivable. January 10 Pay cash on accounts payable, $23,000. January 15 Pay cash for salaries, $30,100. January 30 Firework sales for the month total $201,000. Sales include $66,200 for cash and $134,800 on account. The cost of the units sold is $118,500. January 31 Pay the first monthly installment of $2,165 related to the $112,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 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 $25,200. b. The company estimates future uncollectible accounts. The company determines $4,200 of accounts receivable on January 31 are During January 2021, the following transactions occur: en maneh interest months annually January 1 Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. January 4 Receive $32,200 from customers on accounts receivable. January 10 Pay cash on accounts payable, $23,000. January 15 Pay cash for salaries, $30,100. January 30 Firework sales for the month total $201,000. Sales include $66,200 for cash and $134,800 on account. The cost of the units sold is $118,500. January 31 Pay the first monthly installment of $2,165 related to the $112,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 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 $25,200. b. The company estimates future uncollectible accounts. The company determines $4,200 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.) c. Unpaid salaries at the end of January are $27,300. d. Accrued income taxes at the end of January are $9,200. e. $19,901 of the long-term note payable balance will be paid over the next year. Journal entry worksheet 2 3 4 5 6 7 8 .... 14 Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. Record the issuance of the long-term note payable. Note: Enter debits before credits. Date Account Title Debit Credit Jan 01 Record entry Clear entry View general journal Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. Record the issuance of the long-term note payable. 2 Receive $32,200 from customers on accounts receivable. 3 Pay cash on accounts payable, $23,000. 4 Pay cash for salaries, $30,100. 5 Record the firework sales of $201,000. Sales include $66,200 for cash and $134,800 on account. 6 The cost of the units sold is $118,500. 7 Pay the first monthly installment of $2,165 related to the $112,000 long-term note payable borrowed in January 1. Round your interest calculation to the nearest dollar. 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 $25,200. Prepare the adjusting journal entry for depreciation. 9 At the end of January, $4,200 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. 10 Unpaid salaries at the end of January are $27,300. Prepare the adjusting entry for salaries. 11 Accrued income taxes at the end of January are $9,200. Prepare the adjusting entry for income tax. 10 Unpaid salaries at the end of January are $27,300. Prepare the adjusting entry for salaries. 11 Accrued income taxes at the end of January are $9,200. Prepare the adjusting entry for income tax. 12 Record the reclassification of $19,901 from long-term notes payable to current notes payable. 13 Prepare the closing entry for revenue. 14 Prepare the closing entry for expenses. On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit points Debit $ 12,400 36,400 153,200 79,300 132,000 Skipped Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals eBook $ 3,000 10,800 30,900 212,000 156,600 $413,300 References $413,300 During January 2021, the following transactions occur: January 1 Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. January 4 Receive $32, 200 from customers on accounts receivable. January 10 Pay cash on accounts payable, $23,000. January 15 Pay cash for salaries, $30,100. January 30 Firework sales for the month total $201,000. Sales include $66,200 for cash and $134,800 on account. The cost of the units sold is $118,500. January 31 Pay the first monthly installment of $2,165 related to the $112,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 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 $25,200. b. The company estimates future uncollectible accounts. The company determines $4,200 of accounts receivable on January 31 are During January 2021, the following transactions occur: en maneh interest months annually January 1 Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. January 4 Receive $32,200 from customers on accounts receivable. January 10 Pay cash on accounts payable, $23,000. January 15 Pay cash for salaries, $30,100. January 30 Firework sales for the month total $201,000. Sales include $66,200 for cash and $134,800 on account. The cost of the units sold is $118,500. January 31 Pay the first monthly installment of $2,165 related to the $112,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 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 $25,200. b. The company estimates future uncollectible accounts. The company determines $4,200 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.) c. Unpaid salaries at the end of January are $27,300. d. Accrued income taxes at the end of January are $9,200. e. $19,901 of the long-term note payable balance will be paid over the next year. Journal entry worksheet 2 3 4 5 6 7 8 .... 14 Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. Record the issuance of the long-term note payable. Note: Enter debits before credits. Date Account Title Debit Credit Jan 01 Record entry Clear entry View general journal Borrow $112,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,165 are required at the end of each month for 60 months. Record the issuance of the long-term note payable. 2 Receive $32,200 from customers on accounts receivable. 3 Pay cash on accounts payable, $23,000. 4 Pay cash for salaries, $30,100. 5 Record the firework sales of $201,000. Sales include $66,200 for cash and $134,800 on account. 6 The cost of the units sold is $118,500. 7 Pay the first monthly installment of $2,165 related to the $112,000 long-term note payable borrowed in January 1. Round your interest calculation to the nearest dollar. 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 $25,200. Prepare the adjusting journal entry for depreciation. 9 At the end of January, $4,200 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. 10 Unpaid salaries at the end of January are $27,300. Prepare the adjusting entry for salaries. 11 Accrued income taxes at the end of January are $9,200. Prepare the adjusting entry for income tax. 10 Unpaid salaries at the end of January are $27,300. Prepare the adjusting entry for salaries. 11 Accrued income taxes at the end of January are $9,200. Prepare the adjusting entry for income tax. 12 Record the reclassification of $19,901 from long-term notes payable to current notes payable. 13 Prepare the closing entry for revenue. 14 Prepare the closing entry for expenses