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 $ 59,900 27,400 $ 3,400 Accounts Cash

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

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 $ 59,900 27,400 $ 3,400 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,500 26,400 167,000 16,000 232,000 66,800 $318,200 $318,200 During January Year 1, the following transactions occur: January 1 Purchase equipment for $20,700. The company estimates a residual value of $2,700 and a six-year service life January 4 Pay cash on accounts payable, $10,700. January 8 Purchase additional inventory on account, $94,900. January 15 Receive cash on accounts receivable, $23,200. January 19 Pay cash for salaries, $31,000. January 28 Pay cash for January utilities, $17,700. January 30 Sales for January total $232,000. All of these sales are on account. The cost of the units sold is $121,000. 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 $4,200 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 $33,800. e. Accrued income taxes at the end of January are $10,200. Answer is complete and correct. General Journal Credit No 1 Date January 01 Debit 20,700 Equipment Cash 20,700 2 January 04 10,700 Accounts Payable Accounts Payable Cash 10,700 January 08 94,900 Inventory Accounts Payable 94,900 4 January 15 23,200 Cash Accounts Receivable 23,200 January 19 31,000 Salaries Expense Cash 31,000 LLLLL January 28 17,700 Utilities Expense Cash 17,700 7 January 30 232,000 Accounts Receivable Sales Revenue 232,000 January 30 121,000 Cost of Goods Sold Inventory 121,000 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select particular "No Journal Entry Required" in the first account field.) Answer is not complete. Debit Credit No 1 Date January 31 General Journal Depreciation Expense Accumulated Depreciation 250 T 2 50 January 31 Bad Debt Expense Allowance for Uncollectible Accounts January 31 0 1100 Interest Receivable Interest Revenue 110 January 31 33,800 Salaries Expense Salaries Payable 33,800 January 31 10,200 Income Tax Expense Income Tax Payable 10,200 3. Prepare an adjusted trial balance as of January 31, Year 1. Adjusted Trial Balance January 31, Year 1 Accounts Debit Credit Totals 0 $ 4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-Step Income Statement For the month ended January 31, Year 1 Expenses Total Operating Expenses 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 ST Total Current Liabilities Stockholder's Equity Total Current Assets Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets | $ 0 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the closing entry for revenues. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal

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

Authors: David Spiceland, Wayne Thomas, Don Herrmann

4th edition

1259307956, 978-1259307959

More Books

Students also viewed these Accounting questions

Question

4. Explain how to price managerial and professional jobs.pg 87

Answered: 1 week ago