Question
Question 1: Prepare the journal entries for January 1, 4, 8, 15, 19, 28, 30. Question 2: Record the adjusting entries on January 31 for
Question 1: Prepare the journal entries for January 1, 4, 8, 15, 19, 28, 30.
Question 2: Record the adjusting entries on January 31 for the above transactions.
2a) Record the adjustment for depreciation on the equipment for the month of January using the straight-line method.
2b) Record the adjustment at the end of January for bad debts.
2c) Record the adjustment for accrued interest revenue on notes receivable for January.
2d) Record the adjustment for unpaid salaries at the end of January.
2e) Record the adjustment for accrued income taxes at the end of January.
The tollowing nformation appiies to the questions d'solayed below On January 1, 2018, the general ledger of TNT Flreworks Includes the following account balances Credit Cash $ 60,600 28.800 Allowance for Uncollectible Accounts 4,100 38,200 34.800 174,000 Notes Recevable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earning 16.700 239,000 76,600 Totals $336.40O $336.400 During January 2018, the following transactions occur January 1. Purchase equipment for $21,400. The company estimates a reskdual value of $3,400 and a five-year service life January 4. Pay cash on accounts payable, $11,400. January 8. Purchase additlonal Inventory on account, $101,900 January 15. Recelve cash on accounts recevable, $23,900 January 19. Pay cash for salaries, $31.700. January 28. Pay cash for January utilities, $18,400. January 30. Firework sales for January total $239,000. All of these sales are on account. The cost of the unlts sold is $124,500 Information for adjusting entries: 1. Depreciation on the equipment for the month of January is calculated using the straight-line method. 2. At the end of January. S4.900 of accounts receivable are past due, and the company estimates that 50% ofthese accounts will not be collected. Of the remaining accounts recevable, the company estimates that 3% wll not be collected. The note recelvable of $34,800 Is consldered fully collectible and therefore Is not included In the estimate of uncollectible accounts 3. Accrued interest revenue on notes recelvable for January 4. Unpaid salaries at the end of January are $34,500. 5. Accrued income taxes at the end of January are $10,900Step by Step Solution
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