On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit $ 4,100 Accounts Debit Cash $ 60,600 Accounts Receivable 28,800 Allowance for Uncollectible Accounts Inventory 38,200 Notes Receivable (5%, due in 34,800 2 years) Land 174,000 Accounts Payable Common Stock Retained Earnings Totals $336,400 16,700 239,000 76,600 $336,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $21,400. The company estimates a residual value of $3,400 and a five-year service life. January 4 Pay cash on accounts payable, $11,400. January 8 Purchase additional inventory on account, $101,900. January 15 Receive cash on accounts receivable, $23,900. January 19 Pay cash for salaries, $31,700. January 28 Pay cash for January utilities, $18, 400. January 30 Sales for January total $239,000. All of these sales are on account. The cost of the units sold is $124,500. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. 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 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $34,500. e. Accrued income taxes at the end of January are $10,900. General General Trial Income Balance Require... Analysis Journal Ledger Balance Statem... Sheet 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. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as 2. items 9-13). 3. Review the adjusted 'Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab. 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. Record the closing entries in the 'General Journal' tab (these are shown as items 14 and 6. 15). 7. Using the information from the requirements above, complete the 'Analysis' tab. Requirement General Journal >
