On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 102,700 37,800 153. see 82.3ee 135,000 $ Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Bonds Payable Discount on Bonds Payable Common Stock Retained Earnings Totals 3,309 11,100 34,209 135,000 31, see 215,000 143,400 $ 542,eee $ 542,800 During January 2021, the following transactions occurred: January 1 Borrowed $115,800 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,223.27 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $115,808. The 7% bonds pay interest semiannually each June 30 and December 31. January 4 Received $32,500 from customers on accounts receivable. January 10 Paid cash on accounts payable, $26,000. January 15 Paid cash for salaries, $30,400. January 30 Firework sales for the month totaled $210,w20. Sales included $66,500 for cash and $143,5ee on account. The cost of the units sold was $120,000. January 31 Paid the first monthly installment of $2,223 related to the $115,880 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. n 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 $27,000. 2. At the end of January. $4,500 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. 3. Unpaid salaries at the end of January are $27,600. 4. Accrued income taxes at the end of January are $6.500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) 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 9-12). 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' tab. 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 13-14). 7. Using the information from the requirements above, complete the 'Analysis' tab.
