On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
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On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $13,000 Credit Accounts Receivable 37,600 Allowance for Uncollectible Accounts $ 3,600 Inventory Land Buildings 153,800 85,300 138,000 Accumulated Depreciation 11,400 37,500 Common Stock 218,000 Accounts Payable Retained Earnings Totals 157,200 $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. Receive $32,800 from customers on accounts receivable. January 4 January 10 Pay cash on accounts payable, $29,000. January 15 Pay cash for salaries, $30,700. January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500. January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Exercise 9-24 (Algo) Part 2 The following information is available on January 31, 2024. 1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $25,800. . The company estimates additional future uncollectible accounts of $3,114. . Unpaid salaries at the end of January are $27,900. 1. Accrued income taxes at the end of January are $9,800. . The portion of Notes Payable (long-term) due within the next 12 months is reclassified as Notes Payable (current). The amount of the reclassification is $20,967. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $13,000 Credit Accounts Receivable 37,600 Allowance for Uncollectible Accounts $ 3,600 Inventory Land Buildings 153,800 85,300 138,000 Accumulated Depreciation 11,400 37,500 Common Stock 218,000 Accounts Payable Retained Earnings Totals 157,200 $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. Receive $32,800 from customers on accounts receivable. January 4 January 10 Pay cash on accounts payable, $29,000. January 15 Pay cash for salaries, $30,700. January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500. January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Exercise 9-24 (Algo) Part 2 The following information is available on January 31, 2024. 1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $25,800. . The company estimates additional future uncollectible accounts of $3,114. . Unpaid salaries at the end of January are $27,900. 1. Accrued income taxes at the end of January are $9,800. . The portion of Notes Payable (long-term) due within the next 12 months is reclassified as Notes Payable (current). The amount of the reclassification is $20,967. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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