Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 59,600 26,00 $ 3,100 Accounts Cash

image text in transcribed
image text in transcribed
image text in transcribed
On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 59,600 26,00 $ 3,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Account Inventory Notes Receivable (50, due in 2 years) Land Accounts Payable Comson Stock Retained Earnings Totals 37,200 22,800 164,000 15,700 229,000 62,600 9310.400 $310.400 During January Year 1, the following transactions occur January I 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 in January 30 Sales for January total $229,000. All of these sales are an account. The cost of the units sold in $119,500. Information for adjusting entries. 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 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a minus sign.) Balance Sheet January 31, Year 1 Assets Liabilities $ Cash Accounts Receivable Less: Allowance Inventory Interest Receivable $ 97,200 33,500 9,900 3,600 Accounts Payable 232,900 Salaries Payable (8,820) Income Tax Payable 9,600 95 Total Current Liabilities 237,375 Stockholder's Equity Common Stock Retained Earnings 140,600 Total Current Assets Notes Receivable Equipment 22,900 74,600 Land Total Stockholders' Equity Total Liabilities and Stockholders' Equity 97,500 $ 238,100 Total Assets $ 237,375

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

4th edition

1259066525, 978-1259066528

Students also viewed these Accounting questions