Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)

[The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	11,200
Accounts Receivable		34,000
Allowance for Uncollectible Accounts					$	1,800
Inventory		152,000
Land		67,300
Buildings		120,000
Accumulated Depreciation						9,600
Accounts Payable						17,700
Common Stock						200,000
Retained Earnings						155,400
Totals	$	384,500			$	384,500

During January 2021, the following transactions occur:

January 1		Borrow $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.

Exercise 9-21 Part 6

6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

9 Required information Journal entry worksheet 2 Record the closing entry for expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit January 31 2021 K Prev 10 11 of 11Next Required information Part 3 of 4 Journal entry worksheet 2 0.9 points Record the closing entry for revenue accounts. eBook References Note: Enter debits before credits. Date General Journal Debit Credit January 31 2021 Record entry Clear entry View general journal