Question
The company had the following activity: January 1 January 4 January 8 January 15 Purchase equipment for $18,500. The company estimates a residual value
The company had the following activity: January 1 January 4 January 8 January 15 Purchase equipment for $18,500. The company estimates a residual value of $500 and a five-year service life. Pay cash on accounts Payable, $11,500. Purchase additional inventory on account, $112,900. Receive cash on accounts receivable, $19,500. January 19 Pay cash for salaries, $24,600. January 28 January 30 Pay cash for January utilities, $12,750. Firework sales for January total $225,200. All of these sales are on account. The cost of the units sold is $128,000. Required 1 Record each of the transactions listed in the general journal and post to the general ledger. 2 Record adjusting entries on January 31 in the general journal and post to the general ledger. A worksheet has been provided to help you organize your work. This is not required but bonus points will be awarded for completing the worksheet. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company records an adjusting entry for $6,300 for estimated future uncollectible accounts. c. The company has accrued interest on notes receivable for January (5% note with a $18,000 balance--See the general ledger.) d. Unpaid salaries owed to employees at the end of January are $18,200. e. The company accrued income taxes at the end of January of $5,200. 3 Prepare an adjusted trial balance as of January 31, 2024. The worksheet provided satisfies this requirement.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started