On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances Accounts Debit Credit Cash $ 12,100 Accounts Receivable 35,800 Allowance for Uncollectible Accounts $ 2,700 Inventory 152,900 Land 76,300 Buildings 129,000 Accumulated Depreciation 10,500 Accounts Payable 27,600 Common Stock 209,000 Retained Earnings 156,300 Totals $ 406,100 $ 406,100 During January 2024, the following transactions occur January 1 Borrow $109,000 from Captive Credit Corporation The installment note bears interest at 6 annually and matures in 5 years Payments of $2,107 are required at the end of each month for 60 months January 4 Receive $31,900 from customers on accounts receivable January 10 Pay cash on accounts payable, $20,000 January 15 Pay cash for salaries, $29,800 January 30 Firework sales for the month total $200,400 The cost of the units sold is $117,000 January 31 Pay the first monthly installment of $2,107 related to the $109,000 borrowed on January 1 3 Calculate an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January ( requirement 1) and adjusting entries at the end of January ( requirement 2)

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Posted on Sep 17, 2024

On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 12,100 Accounts Receivable 35,800 Allowance

On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances:

Accounts	Debit	Credit
Cash	$ 12,100
Accounts Receivable	35,800
Allowance for Uncollectible Accounts		$ 2,700
Inventory	152,900
Land	76,300
Buildings	129,000
Accumulated Depreciation		10,500
Accounts Payable		27,600
Common Stock		209,000
Retained Earnings		156,300
Totals	$ 406,100	$ 406,100

During January 2024, the following transactions occur:

January 1	Borrow $109,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,107 are required at the end of each month for 60 months.
January 4	Receive $31,900 from customers on accounts receivable.
January 10	Pay cash on accounts payable, $20,000.
January 15	Pay cash for salaries, $29,800.
January 30	Firework sales for the month total $200,400. The cost of the units sold is $117,000.
January 31	Pay the first monthly installment of $2,107 related to the $109,000 borrowed on January 1

3.Calculate an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January (requirement 1) and adjusting entries at the end of January (requirement 2)