requirements 1 and 2

2. Calculate the times interest earned ratio for E-Travel and Pricecheck. Which company is better able to meet interest payments as they become due? E9-21 On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Complete cycle using liability tran (LO9-2, LO Credit Debit $ 11,200 34,000 $ 1,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals 152,000 67,300 120,000 9,600 17,700 200,000 155,400 $384,500 $384,500 During January 2021, the following transactions occur: January 1 BOTTOW $100,000 from Captive Credit Corporation. The installment note bears interest at 7% annually and matures in 5 years. Payments of $1,980 are required at the end of each month for 60 months. January 4 Receive $31,000 from customers on accounts receivable. January 10 Pay cash on accounts payable, $11,000. January 15 Pay cash for salaries, $28,900. January 30 Firework sales for the month total $195,000. Sales include $65,000 for cash and $130,000 on account. The cost of the units sold is $112,500. January 31 Pay the first monthly installment of $1,980 related to the $100,000 borrowed on January 1. Round your interest calculation to the nearest dollar. Required: 1. Record each of the transactions listed above. 2. Record adjusting entries on January 31. A 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 $24,000. e company estimates future uncollectible accounts. The company determines $3,00 of accounts receivable on January 31 are past due, and 50% of these accounts are HAPTER 9 Long-Term Liabilities estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Unpaid salaries at the end of January are $26,100. d. Accrued income taxes at the end of January are $8,000. Tanuary 31 2021. after undatin hemin