Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below) On January 1, Year 1, the general ledger of a company includes the following

image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below) On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 26,200 48,400 $ 5,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6), due April 1, Year 2) Common Stock Retained Earnings Totals 21,100 57,000 20,500 2,600 29,600 61,000 46,000 28,700 $173,200 $173,200 During January Year 1, the following transactions occur: January 2 Sold gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $158,000. January 15 The company sales for the first halt of the month total $146,000. All of these sales are on account. The cost of the units sold is $79,300. January 23 Receive $126,500 from customers on accounts receivable. January 25 Pay $101,000 to inventory suppliers on accounts payable. January 28 Write oft accounts receivable as uncollectible, $5,900. January 30 The company sales for the second half of the month total $154,000. Sales include $17,000 for cash and $137,000 on account. The cost of the units sold is $85,000. January 31 Pay cash for monthly salaries, $53, 100. 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1. Record each of the transactions listed above. (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 2 3 4 5 1 6 7 8 9 10 Record sale of gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. Note: Enter debits before credits. Date General Journal Debit Credit January 02 Record entry Clear entry View general Journal . Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased the company estimated a residual value of $4,300 and a two-year service life. . The company estimates future uncollectible accounts. The company determines $22,000 of accounts receivable on January 31 are past due, and 30% 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.) Accrued interest expense on notes payable for January Accrued income taxes at the end of January are $14,100. By the end of January $4,100 of the gift cards sold on January 2 have been redeemed 2. Record the adjusting entries on January 31 for the above transactions. (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 1 2 3 > Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,300 and a two-year service life. Record the depreciation for the month of January Note: Enter debits before credits General Journal Debli Credit January 31 Record entry Clear entry View general joumat

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_2

Step: 3

blur-text-image_3

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

Bank Strategy, Governance And Ratings

Authors: P. Molyneux

3rd Edition

0230313345, 9780230313347

More Books

Students also viewed these Accounting questions