Questions 15-21 of 21 The followng information opplies to the questions displayed below On January 1, 2018, the general ledger of TNT Fireworks incudes the folowing account belonces Debit IlllCreah s58.700 Cash Accounts Recetvable Allowance for Uncoilectible Accounts 2.200 155,0004800 220.000 36.300 2,000 Notes Receivable es%, due n 2 years) Land Accounts Payoble Common Stock Retained Earning 50000 Totsls $287000 $ 287000 During January 2018, the following transactions occur company esimastes a residual value of $1,500 and a five-yesr service life January 1 Purchase equipment for $19,500 The January 4 Pay cash on accounts payable, $9,500 January 8 Purchase additional inventory on account $82 900 January 15 Receive cash on accounes recelvable, $22,000 January 19 Pay cash for salaries, $29.800 Janusry 28 Pay cesh for January utlities $6,500 January 30 Frework sales for Jenuary total $220,000 All of these sales are on account. The cost of the units sold is $115,000 Information for edjusting entries 1. Depreciation on the equipment for the month of January is calculated using the straight-line method e on Jeuary 31 are past die, and 5 % of these seco na ae estmated to benco ea se the enom accounts are estimated to be uncollectible. The nose recelvable of $12,000 is considered fully collecsble and therefore is not included in the estimate of uncollectible accounts 3. Accrued interest revenue on notes receivable for Jenuary 4 Unpaid salaries at the end of January are $32.600 cor per y esti ates fut re ricollectble accourts The company deter hies $300 or accounts receve 5. Acerued income taxes at the end of January are $9.000 10.00 points Type here to search Questions 15-21 of 21 The followng information opplies to the questions displayed below On January 1, 2018, the general ledger of TNT Fireworks incudes the folowing account belonces Debit IlllCreah s58.700 Cash Accounts Recetvable Allowance for Uncoilectible Accounts 2.200 155,0004800 220.000 36.300 2,000 Notes Receivable es%, due n 2 years) Land Accounts Payoble Common Stock Retained Earning 50000 Totsls $287000 $ 287000 During January 2018, the following transactions occur company esimastes a residual value of $1,500 and a five-yesr service life January 1 Purchase equipment for $19,500 The January 4 Pay cash on accounts payable, $9,500 January 8 Purchase additional inventory on account $82 900 January 15 Receive cash on accounes recelvable, $22,000 January 19 Pay cash for salaries, $29.800 Janusry 28 Pay cesh for January utlities $6,500 January 30 Frework sales for Jenuary total $220,000 All of these sales are on account. The cost of the units sold is $115,000 Information for edjusting entries 1. Depreciation on the equipment for the month of January is calculated using the straight-line method e on Jeuary 31 are past die, and 5 % of these seco na ae estmated to benco ea se the enom accounts are estimated to be uncollectible. The nose recelvable of $12,000 is considered fully collecsble and therefore is not included in the estimate of uncollectible accounts 3. Accrued interest revenue on notes receivable for Jenuary 4 Unpaid salaries at the end of January are $32.600 cor per y esti ates fut re ricollectble accourts The company deter hies $300 or accounts receve 5. Acerued income taxes at the end of January are $9.000 10.00 points Type here to search
