Question
On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash. Accounts Receivable Allowance for Uncollectible Accounts Inventory
On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash. Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings: Totals Debit $ 12,300 Credit 36,200 $ 2,900 153,100 78,300 131,000 10,700 29,800 211,000 156,500 $ 410,900 $ 410,900 During January 2024, the following transactions occur: January 1 Borrow $111,000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $2,146 are required at the end of each month for 60 months. Receive $32,100 from customers on accounts receivable. January 4 January 10 Pay cash on accounts payable, $22,000. January 15 Pay cash for salaries, $30,000. January 30 Firework sales for the month total $200,800. The cost of the units sold is $118,000. January 31 Pay the first monthly installment of $2,146 related to the $111,000 borrowed on January 1. The following information is available on January 31, 2024.
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