ucation.com/hm.tpx eu On January 1, 2018, the general ledger of TNT Fireworks In
ID: 2557392 • Letter: U
Question
ucation.com/hm.tpx eu On January 1, 2018, the general ledger of TNT Fireworks Includes the following account balances: Cash S 60,100 27,800 37,700 28,800 169,000 Inventory Receivable (5%, due, in2 years) Common Stock Rotained Earning 3,600 16,200 234,000 69,600 Totals 323,400 $323,400 During January 2018, the following transactions occur: January 1 Purchase equipment for $20,900. The company estimatos a residual value of $2,900 and a four-year service life. January 4 Pay cash on accounts payable, $10,900 January 8 Purchase additional inventory on account, $96,900. January 15 Receive cash on accounts receivable, $23,400 January 19 Pay cash for salaries, $31,200 January 28 Pay cash for January utilities, $17.900 January 30 Firework sales for January total $234,000. All of these sales are on account. The cost of the units sold is $122,000. The following information is available on January 31, 2018. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. At the end of January, $4,400 of accounts receivable are past due, and the company e able, tho stimates that 50% of these accounts not be collected of the remain ng accounts ree collectible and therefore is not included in the estimate of uncollectible accounts. y estimates that 3% will not be collected. The note re ceivable of $28,800 is considered fully c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $34,000 e. Accrued income taxes at the end of January are $10,400Explanation / Answer
Working:
Trial Balance worksheet Account Beginning Transactions Unadjusted Adjustments Adjusted Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 60100 23400 80900 2600 2600 2600 Accounts Receivable 27800 234000 23400 238400 238400 238400 Allowance for doubtful accounts 3600 3600 5620 9220 9220 Inventory 37700 96900 122000 12600 12600 12600 Notes Receivable 28800 28800 28800 28800 Land 169000 169000 169000 169000 Equipment 20900 20900 20900 20900 Accounts Payable 16200 10900 96900 102200 102200 102200 Common Stock 234000 234000 234000 234000 Retained Earnings 69600 69600 69600 82225 Sales 234000 234000 234000 234000 Cost of goods sold 122000 122000 122000 122000 Salaries Expense 31200 31200 34000 65200 65200 Utilities Expense 17900 17900 17900 17900 323400 323400 557200 557200 643400 643400 34000 5620 677400 649020 205100 234000 472300 427645 Depreciation Expense 375 375 375 Accumulated Depreciatio - Equipment 375 375 375 Bad Debt Expense 5620 5620 5620 Interest Revenue 120 120 120 Interest Receivable 120 120 120 Salaries Payable 34000 34000 34000 Income Tax Expense 10400 10400 10400 Income Tax Payable 10400 10400 10400 Total 323400 323400 557200 557200 643400 643400 50515 50515 693915 693915 221495 234120 472420 472420 Income Summary 12625 Grand Total 323400 323400 557200 557200 643400 643400 50515 50515 693915 693915 234120 234120 472420 472420 Working: Balance of accounts receivable as at Jan.31 238400 Less: Past Due 4400 234000 Allowance for doubtful accounts 50% of past due 2200 3% of balance 7020 Total Allowance 9220 Balance available 3600 Bad debt expense for January 5620 Interest receivable (5% on $28,800 for one month) 120 Depreciation on equipment (20,900-2,900)/4/12 375Related Questions
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