Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) assuming a perpetual FIFO inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold.
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59,800 27,200 $ 3,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,400 25,200 166,000 15,900 231,000 65,400 $315,600 $315,600 During January 2021, the following transactions occurred: January 1 Purchased equipment for $20,600. The company estimates a residual value of $2,600 and a five-year service life. January 4 Paid cash on accounts payable, $10,600. January 8 Purchased additional inventory on account, $93,900. January 15 Received cash on accounts receivable, $23, 100 January 19 Paid cash for salaries, $30,900. January 28 Paid cash for January utilities, $17,600 January 30 Firework sales for January totaled $231,000. All of these sales were on account. The cost of the units sold was $120,500. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. At the end of January, $4,100 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. The note receivable of $25,200 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts. C. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $33,700. e. Accrued income taxes at the end of January are $10,100. 1. Record the purchase of equipment for $20,600. The company estimates a residual value of $2,600 and a five-year service life. 2. Record the cash paid on accounts payable, $10,600. 3. Record the purchase of additional inventory on account, $93,900. 4. Record the cash received on accounts receivable, $23,100. 5. Record the cash paid for salaries, $30,900. 6. Record the cash paid for January utilities, $17,600. 7. Record the sale of fireworks in January, $231,000. All of these sales are on account 8. Record the cost of the fireworks sold in January, $120,500. 9. Record the adjusting entry for depreciation. 10. Record the adjusting entry for uncollectible accounts. 11. Record the adjusting entry for interest. 12. Record the adjusting entry for salaries. 13. Record the adjusting entry for income tax. 14. Record the closing entry for revenue. 15. Record the closing entry for expenses
