On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances Accounts Debit Credit Cash $ 12,000 Accounts Receivable 35,600 Inventory 152,800 Land 75,300 Buildings 128,000 Allowance for Uncollectible Accounts $ 2,600 Accumulated Depreciation 10,400 Accounts Payable 26,500 Common Stock 208,000 Retained Earnings 156,200 Totals $ 403,700 $ 403,700 During January 2021, the following transactions occur January 1 Borrow $108,000 from Captive Credit Corporation The installment note bears interest at 5 annually and matures in 5 years Payments of $2,038 are required at the end of each month for 60 months January 4 Receive $31,800 from customers on accounts receivable January 10 Pay cash on accounts payable, $19,000 January 15 Pay cash for salaries, $29,700 January 30 Firework sales for the month total $198,000 Sales include $65,800 for cash and $132,200 on account The cost of the units sold is $116,500 January 31 Pay the first monthly installment of $2,038 related to the $108,000 borrowed on January 1 Round your interest calculation to the nearest dollar 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 $24,800 Unpaid salaries at the end of January are $26,900 Accrued income taxes at the end of January are $8,800 $19,581 of the long term note payable balance will be paid over the next year The company estimates the amount of their bad debt expense and uncollectible accounts at the end of each month Out of the total accounts receivable shown on the General Ledger (See General Ledger Tab for total A R balance) on January 31, the company determines $3,800 is past due, and 50 of these past due amounts are estimated to be uncollectible (Hint multiply the percentage by the $ amount of the A R that is past due) The remaining accounts receivable balance on January 31 is current (total A R minus amount that is past due), and 2 of the current balance is estimated to be uncollectible Need to construct general journal, income statement, and balance sheet

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Posted on Sep 02, 2024

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

Accounts	Debit		Credit
Cash	$	12,000
Accounts Receivable		35,600
Inventory		152,800
Land		75,300
Buildings		128,000
Allowance for Uncollectible Accounts			$	2,600
Accumulated Depreciation				10,400
Accounts Payable				26,500
Common Stock				208,000
Retained Earnings				156,200
Totals	$	403,700	$	403,700

During January 2021, the following transactions occur:

January 1		Borrow $108,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,038 are required at the end of each month for 60 months.
January 4		Receive $31,800 from customers on accounts receivable.
January 10		Pay cash on accounts payable, $19,000.
January 15		Pay cash for salaries, $29,700.
January 30		Firework sales for the month total $198,000. Sales include $65,800 for cash and $132,200 on account. The cost of the units sold is $116,500.
January 31		Pay the first monthly installment of $2,038 related to the $108,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

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 $24,800.
Unpaid salaries at the end of January are $26,900.
Accrued income taxes at the end of January are $8,800.
$19,581 of the long-term note payable balance will be paid over the next year.
The company estimates the amount of their bad debt expense and uncollectible accounts at the end of each month. Out of the total accounts receivable shown on the General Ledger (See General Ledger Tab for total A/R balance) on January 31, the company determines $3,800 is past due, and 50% of these past due amounts are estimated to be uncollectible (Hint: multiply the percentage by the $ amount of the A/R that is past due). The remaining accounts receivable balance on January 31 is current (total A/R minus amount that is past due), and 2% of the current balance is estimated to be uncollectible.

Need to construct general journal, income statement, and balance sheet.