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On January 1, 2021, the general ledger of Tripley Company included the following account balances: Accounts Debit Credit Cash $ 130,000 Accounts receivable 50,000 Allowance
On January 1, 2021, the general ledger of Tripley Company included the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 130,000 | ||||
Accounts receivable | 50,000 | |||||
Allowance for uncollectible accounts | $ | 16,000 | ||||
Inventory | 31,000 | |||||
Building | 121,000 | |||||
Accumulated depreciation | 20,000 | |||||
Land | 220,000 | |||||
Accounts payable | 70,000 | |||||
Notes payable (8%, due in 3 years) | 96,000 | |||||
Common stock | 110,000 | |||||
Retained earnings | 240,000 | |||||
Totals | $ | 552,000 | $ | 552,000 | ||
The $31,000 beginning balance of inventory consists of 310 units, each costing $100. During January 2021, the company had the following transactions:
January | 2 | Lent $30,000 to an employee by accepting a 6% note due in six months. | ||
5 | Purchased 4,000 units of inventory on account for $440,000 ($110 each) with terms 1/10, n/30. | |||
8 | Returned 100 defective units of inventory purchased on January 5. | |||
15 | Sold 3,800 units of inventory on account for $532,000 ($140 each) with terms 2/10, n/30. | |||
17 | Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future. | |||
20 | Received cash from customers on accounts receivable. This amount includes $37,000 from 2020 plus amount receivable on sale of 3,200 units sold on January 15. | |||
21 | Wrote off remaining accounts receivable from 2020. | |||
24 | Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 3,600 units on January 5. | |||
28 | Paid cash for salaries during January, $38,000. | |||
29 | Paid cash for utilities during January, $20,000. | |||
30 | Paid dividends, $4,000. |
Month-end adjusting entries:
- Of the remaining accounts receivable, the company estimates that 10% will not be collected.
- Accrued interest revenue on notes receivable for January.
- Accrued interest expense on notes payable for January.
- Accrued income taxes at the end of January for $6,000.
- Depreciation on the building, $3,000.
For the month of january prepare a General Journal, General ledger, Trail Balance, Icome Statement, and a balance sheet. With the above information
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