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On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for

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On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Debit $ 11,500 34,600 152,300 70,300 123,000 $ 2,100 9,900 21,000 203,000 155,700 $391,700 Totals $391,700 During January 2021, the following transactions occur: January 1 Borrow $103,000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $1,991 are required at the end of each month for 60 months. January 4 Receive $31,300 from customers on accounts receivable. January 10 Pay cash on accounts payable, $14,000. January 15 Pay cash for salaries, $29,200. January 30 Firework sales for the month total $195,600. Sales include $65,300 for cash and $130,300 on account. The cout of the units sold is $114,000. January 31 Pay the first monthly installment of $1,991 related to the $103,000 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 $24,600. b. The company estimates future uncollectible accounts. The company determines $3,300 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 $26.400. d. Accrued Income taxes at the end of January are $8,300. e. $18,302 of the long-term note payable balance will be paid over the next year. Journal entry worksheet 1 2 3 4 6 7 7 A 14 8 ..... > The cost of the units sold is $114,000. Note: Enter debits before credits Date Account Title Debit Credit Jan 30 Record entry Clear entry View general journal Journal entry worksheet 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 $24,600. Prepare the adjusting journal entry for depreciation. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's Income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Unadjusted Freedom Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 Gross profit $ 0 0 Total operating expenses Operating income 0 0 $ 0

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