On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59, 600 26,800 $ 3,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,200 22,800 164,000 15,700 229,000 62,600 $310,400 $310,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,400. The company estimates a residual value of $2,400 and a four-year service life. January 4 Pay cash on accounts payable, $10,400. January 8 Purchase additional inventory on account, $91,900. January 15 Receive cash on accounts receivable, $ 22,900. January 19 Pay cash for salaries, $30,700. January 28 Pay cash for January utilities, $ 17,400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold is $119,500. 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 $3,900 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 $33,500. e. Accrued income taxes at the end of January are $9,900. Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Credit Debit 20,400 Jan 01 Equipment Cash 20,400 Jan 04 10,400 Accounts Payable Cash 10,400 Jan 08 91,900 Inventory Accounts Payable 91,900 Jan 15 22,900 Cash Accounts Receivable 22,900 Jan 19 30,700 Salaries Expense Cash 30,700 Jan 28 17,400 Utilities Expense Cash 17,400 Jan 30 229,000 Accounts Receivable Sales Revenue 229,000 Jan 30 119,500 Cost of Goods Sold Inventory 119,500 Journal entry worksheet 1 .. - 11 12 13 14 15 Depreciation on the equipment for the month of January is calculated using the straight-line method. Record the adjusting entry for depreciation. Note: Enter debits before credits. Date Debit Credit Jan 31 General Journal Depreciation Expense [Accumulated Depreciation Record entry Clear entry View general journal Journal entry worksheet The company estimates future uncollectible accounts. The company determines $3,900 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 Note: Enter debits before credits. Date General Journal Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Date General Journal Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet
