Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 13,100 37,800 153,900 86,300 139,000 Accounts Cash

image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 13,100 37,800 153,900 86,300 139,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 3,700 11,500 38.500 219.000 157, 300 $430,100 $430,100 During January 2021, the following transactions occur January 1 Borrow $119,000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $2,301 are required at the end of each month for 60 months. January 4 Receive $32,900 from customers on accounts receivable. January 10 Pay cash on accounts payable, $30.000. January 15 Pay cash for salaries, $30.800. January 30 Firework sales for the month total $210,800. Sales include 566.900 for cash and $143.900 c count. The cost of the units sold is $122.000. January 31 Pay the first monthly installment of 52,301 related to the $119,000 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 $27,400. b. The company estimates future uncollectible accounts. The company determines $4,900 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 3.700 11,500 38,600 219,000 157.300 $430, 100 $430, 100 During January 2021, the following transactions occur January 1 Borrow $119,000 from Captive Credit Corporation. The installment note bears Interest at 68 annually and matures in 5 years. Payments of $2.301 are required at the end of each month for 60 months. January 4 Receive $32.900 r ustomers on accounts receivable. January 10 Pay cash on accounts payable, $30,000. January 15 Pay cash for salaries, $30, 300. January 30 Firework sales for the month total $210,800. Sales include 566,900 for cash and $143,900 on account. The cost of the units sold is $122,000. January 31 Pay the first monthly installment of $2,301 related to the $119,000 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 $27,400. b. The company estimates future uncollectible accounts. The company determines $4,900 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on Jany 31 are not past due, and 2% 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 $28,000. d. Accrued income taxes at the end of January are $9,900. e. $21,145 of the long-term note payable balance will be paid over the next year Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis c. Unpaid salaries at the end of January are $28,000. d. Accrued income taxes at the end of January are $9,900. e. $21,145 of the long-term note payable balance will be paid over the next year. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis erences 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 7) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31, in the 'General Journal' tab (these are shown as items 8-12). 3. Review the adjusted 'Trial Balance as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement'ta 5. Prepare a classified balance sheet as of January 31, 2021, in the Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 13 and 14). 7. Using the information from the requirements above, complete the 'Analysis' tab. General Journal > On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 13,100 37,800 153,900 86,300 139,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 3,700 11,500 38.500 219.000 157, 300 $430,100 $430,100 During January 2021, the following transactions occur January 1 Borrow $119,000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $2,301 are required at the end of each month for 60 months. January 4 Receive $32,900 from customers on accounts receivable. January 10 Pay cash on accounts payable, $30.000. January 15 Pay cash for salaries, $30.800. January 30 Firework sales for the month total $210,800. Sales include 566.900 for cash and $143.900 c count. The cost of the units sold is $122.000. January 31 Pay the first monthly installment of 52,301 related to the $119,000 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 $27,400. b. The company estimates future uncollectible accounts. The company determines $4,900 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger) Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 3.700 11,500 38,600 219,000 157.300 $430, 100 $430, 100 During January 2021, the following transactions occur January 1 Borrow $119,000 from Captive Credit Corporation. The installment note bears Interest at 68 annually and matures in 5 years. Payments of $2.301 are required at the end of each month for 60 months. January 4 Receive $32.900 r ustomers on accounts receivable. January 10 Pay cash on accounts payable, $30,000. January 15 Pay cash for salaries, $30, 300. January 30 Firework sales for the month total $210,800. Sales include 566,900 for cash and $143,900 on account. The cost of the units sold is $122,000. January 31 Pay the first monthly installment of $2,301 related to the $119,000 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 $27,400. b. The company estimates future uncollectible accounts. The company determines $4,900 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on Jany 31 are not past due, and 2% 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 $28,000. d. Accrued income taxes at the end of January are $9,900. e. $21,145 of the long-term note payable balance will be paid over the next year Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis c. Unpaid salaries at the end of January are $28,000. d. Accrued income taxes at the end of January are $9,900. e. $21,145 of the long-term note payable balance will be paid over the next year. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis erences 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 7) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31, in the 'General Journal' tab (these are shown as items 8-12). 3. Review the adjusted 'Trial Balance as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement'ta 5. Prepare a classified balance sheet as of January 31, 2021, in the Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 13 and 14). 7. Using the information from the requirements above, complete the 'Analysis' tab. General Journal >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting and Auditing Research Tools and Strategies

Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana

9th edition

1119441915, 1119441919, 978-1-119-3737, 9781119373629 , 978-1119441915

More Books

Students also viewed these Accounting questions

Question

5.3 Explain internal recruitment methods.

Answered: 1 week ago