On January 1, 2018, the general ledger of Freedom Fireworks includes the follovwing account balances: Accounts...

 

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On January 1, 2018, the general ledger of Freedom Fireworks includes the follovwing account balances: Accounts Debit Credit $ 13,100 37,800 153,900 86,300 Cash Accounts Recelvable Inventory Land Buildings 139,000 Allowance for Uncollectible Accounts $ 3,700 Accumulated Depreciation Accounts Payable Common Stock 11,500 38,600 219,000 157,300 Retained Earnings Totals $430,100 $430,100 During January 2018, the following transactions occur: January 1 Borrow $119,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,170 are required at the end of each month for 60 months. January 4 Recelve $32,900 from customers on accounts recelvable. January 10 Pay cash on accounts payable, $30,000. January 15 Pay cash for salaries, $30,800. January 30 Firework sales for the month total $210,800. Sales include $66,900 for cash and $143,900 on account. The cost of the units sold is $122,000. January 31 Pay the first monthly installment of $2,170 related to the $119,000 borrowed on January 1. Round your interest calculation to the nearest dollar. On January 1, 2018, the general ledger of Freedom Fireworks includes the follovwing account balances: Accounts Debit Credit $ 13,100 37,800 153,900 86,300 Cash Accounts Recelvable Inventory Land Buildings 139,000 Allowance for Uncollectible Accounts $ 3,700 Accumulated Depreciation Accounts Payable Common Stock 11,500 38,600 219,000 157,300 Retained Earnings Totals $430,100 $430,100 During January 2018, the following transactions occur: January 1 Borrow $119,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,170 are required at the end of each month for 60 months. January 4 Recelve $32,900 from customers on accounts recelvable. January 10 Pay cash on accounts payable, $30,000. January 15 Pay cash for salaries, $30,800. January 30 Firework sales for the month total $210,800. Sales include $66,900 for cash and $143,900 on account. The cost of the units sold is $122,000. January 31 Pay the first monthly installment of $2,170 related to the $119,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

Answer rating: 100% (QA)

Freedom Fireworks Account Titles and Explanation Debit Credit Date 112018 Cash ac Dr ... View the full answer