11:15 PM * 40%--1 value: 15.00 points On January 1, 2018, the general ledger of
ID: 2398252 • Letter: 1
Question
11:15 PM * 40%--1 value: 15.00 points On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (6%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Debit Credit S 25,100 14,200 $ 2,000 3,100 26,000 77,600 9,000 102,000 33,000 Totals $146,000 $146,000 During January 2018, the following transactions occur: January 2 Provide services to customers for cash, $41,100 January 6 Provide services to customers on account, $78,400 January 15 Write off accounts receivable as uncollectible, $1,600 January 20 Pay cash for salaries, $32,000 January 22 Receive cash on accounts receivable, $76,000 January 25 Pay cash on accounts payable, $6,100 January 30 Pay cash for utilities during January, $14,300 The following information is available on January 31, 2018 a. At the end of January, $5,600 of accounts receivable are past due, and the company estimates that 20% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. The note receivable of $26,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts b. Supplies at the end of January total $1,000 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 $34,100Explanation / Answer
January Transaction:
Adjusting Entries:
Working:
Note: Adjusted trial balance generated after giving effect of these entries will be required for completing the remaining parts.
Date General Journal Debit Credit Jan-02 Cash 41100 Service revenue 41100 (To record service revenue earned in cash) Jan-06 Accounts receivable 78400 Service revenue 78400 (To record service revenue earned on account) Jan-15 Allowance for uncollectible accounts 1600 Accounts receivable 1600 (To record write-off of uncollectible accounts) Jan-20 Salaries expense 32000 Cash 32000 (To record cash paid for salaries) Jan-22 Cash 76000 Accounts receivable 76000 (To record collections on account) Jan-25 Accounts payable 6100 Cash 6100 (To record payments on account) Jan-30 Utilities expense 14300 Cash 14300 (To record utilities expense)Related Questions
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