This is one question seperated into parts.
On January 1, 2021, the general ledger of TNT Fireworks Includes the following account balances: Credit Debit $ 58,700 25,000 $ 2,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (50, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,300 12,000 155,000 14,000 220,000 50,000 $287.000 $287,000 During January 2021, the following transactions occur January 1 Purchase equipment for $19,500. The company estimates a renidual value of $1,500 and a five-year service life. January 4 Pay cash on accounts payable, $9,500. January 9 Purchase additional Inventory on account, $82,900. January 15 Receive canh on accounts receivable, $22,000. January 19 Pay cash for salaries, $29,800. January 20 Pay cash for January utilities, $16,500. January 30 Pirework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,000 of accounts recevable on January 31 are past due, and 50% 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 recevable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $32,600. e. Accrued Income taxes at the end of January are $9.000 3. Prepare an adjusted trial balance as of January 31, 2021. Answer is not complete. Credit TNT FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Note Receivable Debit 6,300 224,800 9,000 5,100 x 22,800 x 50 164,000 19,500 300 X Land Equipment Accumulated Depreciation Accounts Payable Salaries Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Interest Revenue Cost of Goods Sold Salaries Expense Utilities Expense Depreciation Expense Bad Debt Expense Income Tax Expense Totals 89,100 32,600 9,000 229,000 62,600 X 220,000 50 SIX 115,000 62,400 16,500 300 5,900 9,000 $ 651,650 $ 651.650 5. Prepare a classified balance sheet as of January 31, 2021 (Deductible amounts should be indicated with a minus sign.) Answer is not complete. TNT FIREWORKS Balance Shoot January 31, 2021 Assets Liabilities Cash Accounts Receivable Less: Allowance $ 5,400 223,000 10,300 le Accounts Payable Common Stock Retained Earnings Salarles Payablo Income Tax Payable Total Current Liabilities Stockholder's Equity 0 Total Current Assets 238.700 Total Stockholders' Equity Total Liabilities and Stockholders' Equity ola $ 0 Total Assets 238,700 Journal entry worksheet
