Business, 19.06.2020 20:57 caro74

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59,800 27,200 $ 3,300 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,400 25,200 166,000 15,900 231,000 65,400 $315,600 $315,600 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,600. The company estimates a residual value of $2,600 and a five-year service life. January 4 Pay cash on accounts payable, $10,600. January 8 Purchase additional inventory on account, $93,900. January 15 Receive cash on accounts receivable, $23,100. January 19 Pay cash for salaries, $30,900. January 28 Pay cash for January utilities, $17,600. January 30 Sales for January total $231,000. All of these sales are on account. The cost of the units sold is $120,580. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
b. The company estimates future uncollectible accounts. The company determines $4,100 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
c. Accrued interest revenue on notes receivable for January
d. Unpaid salaries at the end of January are $33,700.
e. Accrued income taxes at the end of January are $10,100.
Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions.

Answers: 2

Show answers

Answers

Answer from: walmartislife

TNT Fireworks

Journal Entries:

January 1:

Debit Equipment $20,600

Credit Cash Account $20,600

To record the purchase of equipment.

Jan. 4

Debit Accounts Payable $10,600

Credit Cash Account $10,600

To record the payment on account.

Jan. 8

Debit Inventory $93,900

Credit Accounts Payable $93,900

To record the purchase of inventory on account.

Jan. 15

Debit Cash Account $23,100

Credit Accounts Receivable $23,100

To record the cash receipts.

Jan. 19

Debit Salaries Expense $30,900

Credit Cash Account $30,900

To record the payment for salaries.

Jan 28

Debit Utilities Expense $17,600

Credit Cash Account $17,600

To record the payment for utilities for the month.

Jan. 30

Debit Accounts Receivable $231,000

Credit Sales Revenue $231,000

To record the sales on account.

Debit Cost of Goods Sold $120,580

Credit Inventory $120,580

To record the cost of sales.

Journal for Adjusting entries:

a. Debit Depreciation Expense - Equipment $300

Credit Accumulated Depreciation - Equipment $300

To record depreciation expense for the month.

b. Debit Allowance for Doubtful Accounts $2,050

Credit Accounts Receivable $2,050

To record uncollectible 50% past due, written off.

c. Debit Uncollectibe Expense $5,742

Credit Allowance of Doubtful Accounts $5,742

To record the uncollectible expense and bring the balance of the allowance to $6,992.

d) Debit Salaries & Wages Expense $33,700

Credit Salaries & Wages Payable $33,700

To record accrued salaries.

e) Debit Income Taxes Expense $10,100

Credit Income Taxes Payable $10,100

To record accrued taxes.

Explanation:

Journal entries are made to record business transactions as they occur daily. Journal entries help to post accounts to the general ledger where accounts are balanced.

Answer from: Quest

Ibelieve that the answer is d. because that is the only option that is efficient.

Answer from: Quest

answer; by looking at total product,marginal product,and changes in both after changes in inputs

Another question on Business

Business, 21.06.2019 21:00

In addition to having a bachelor's degree in accounting, a certification will increase a tax accountant's job opportunities and allow them to file reports with the

Answers: 1

Answer

Business, 22.06.2019 04:30

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?

Answers: 3

Answer

Business, 22.06.2019 12:10

Drag each label to the correct location on the image determine which actions by a manager are critical interactions - listening to complaints - interacting with customers - responding to complaints - assigning staff duties -taking action to address customer grievances -keeping track of reservations

Answers: 2

Answer

Business, 22.06.2019 17:00

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court.the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court.because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located.because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center.because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.

Answers: 1

Answer

You know the right answer?

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Cre...

Questions