Question
[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
[The following information applies to the questions displayed below.]
On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 26,700 | ||||
Accounts Receivable | 15,000 | |||||
Allowance for Uncollectible Accounts | $ | 3,600 | ||||
Supplies | 3,900 | |||||
Notes Receivable (6%, due in 2 years) | 18,000 | |||||
Land | 80,300 | |||||
Accounts Payable | 8,500 | |||||
Common Stock | 98,000 | |||||
Retained Earnings | 33,800 | |||||
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Totals | $ | 143,900 | $ | 143,900 | ||
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During January 2018, the following transactions occur:
January 2 Provide services to customers for cash, $49,100. January 6 Provide services to customers on account, $86,400. January 15 Write off accounts receivable as uncollectible, $3,300. January 20 Pay cash for salaries, $32,800. January 22 Receive cash on accounts receivable, $84,000. January 25 Pay cash on accounts payable, $6,900. January 30 Pay cash for utilities during January, $15,100.
Record each of the transactions listed above.
a. The company estimates future uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. b. Supplies at the end of January total $950. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. d. Unpaid salaries at the end of January are $34,900.
2. Record adjusting entries on January 31 for the above transactions.
3. Prepare an adjusted trial balance as of January 31, 2018.
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