Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) assuming a FIFO perpetual 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 Freedom Fireworks includes the following account balances: Credit Debit $103,200 38,000 154,000 87,300 140,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Bonds Payable Discount on Bonds Payable Common Stock Retained Earnings Totals $ 3,800 11,600 39, 700 140,000 32,000 220,000 139,400 $554,500 $554,500 During January 2021, the following transactions occurred: January 1 Borrowed $120,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,264.55 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $120,000. The 6% bonds pay interest semiannually each June 30 and December 31. January 4 Received $33,000 from customers on accounts receivable. January 10 Paid cash on accounts payable, $31,000. January 15 Paid cash for salaries, $30,900. January 30 Firework sales for the month totaled $206,000. Sales included $67,000 for cash and $139,000 on account. The cost of the units sold was $122,500. January 31 Paid the first monthly installment of $2,265 related to the $120,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,000. 2. At the end of January, $5,000 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 2% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $28,100. 4. Accrued income taxes at the end of January are $7,000. 1. Borrowed $120,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,265 are required at the end of each month for 60 months. 2. Called the bonds at the contractual call price of $120,000. The 6% bonds pay interest semiannually each June 30 and December 31. 3. Received $33,000 from customers on accounts receivable. 4. Paid cash on accounts payable, $31,000. 5. Paid cash for salaries, $30,900. 6. Firework sales for the month totalled $206,000. Sales included $67,000 for cash and $139,000 on account. 7. Cost of the units sold was $122,500. 8. Paid the first monthly installment of $2,265 related to the $120,000 borrowed on January 1. 9. Record the adjusting entry for depreciation on the building for the month of January using the straight-line method. At the time the building was purchased, the company estimated a service life of ten years and a residual value of $26,000 10. Record the adjusting entry for uncollectible accounts at the end of January. The company estimates that 50% of $5,000 accounts receivable will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. 11. Record the adjusting entry for unpaid salaries at the end of January are $28,100 12. Record the adjusting entry for accrued income taxes at the end of January are $7,000. 13. Record the closing entry for revenue. 14. Record the closing entry for expenses
