On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 12,200 36,000 153,000 77,300 130,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 2,800 10,600 28,700 210,000 156,400 $408,500 $408,500 During January 2021, the following transactions occur January 1 Borrow $110,000 from Captive Credit Corporation. The installment note bears interest annually and matures in 5 years. Payments of $2,127 are required at the end of each 60 months. Tanuary 4 Reretve 532.DAD from customers on arcounts receivable ORI ab Help Save & Exit Submis Check my work January 1 Borrow $110,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,127 are required at the end of each month for 60 months. January 4 Receive $32,000 from customers on accounts receivable. January 10 Pay cash on accounts payable, $21,000. January 15 Pay cash for salaries, $29,900. January 30 Firework sales for the month total $200,600. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117,500. January 31 Pay the first monthly installment of $2,127 related to the $110,000 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 $25,000. b. The company estimates future uncollectible accounts. The company determines $4,000 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.) c. Unpaid salaries at the end of January are $27,100. d. Accrued income taxes at the end of January are $9,000. e. $19,546 of the long-term note payable balance will be paid over the next year. Prev 1 of 1 Next > If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet I At the end of January, $4,000 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 Note: Enter debits before credits Ces Date Account Title Debit Credit Jan 31 Prev 1 of 1 Next > View transaction list Journal entry worksheet ..... 5 6 7 9 10 .... 14 Unpaid salaries at the end of January are $27,100. Prepare the adjusting entry for salaries. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 O I If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet O O BL Sduon list Journal entry worksheet 1 ..... 7 8 9 10 11 Record the reclassification of $19,546 from long-term notes payable to current notes payable. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Prev 1 of Next > O BI Lansaction/event, select "No Journal Entry Required" in the first account View transaction list Journal entry worksheet ! If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field, View transaction list Journal entry worksheet
