On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,000 Accounts Receivable 25, 600 Allowance for Uncollectible Accounts $ 2,500 Inventory 36,600 Notes Receivable (5%, due in 2 years) 15,600 Land 158,000 Accounts Payable 15, 100 Common Stock 223,000 Retained Earnings 54,200 Totals $294,800 $294,800 During January 2024, the following transactions occur: January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,800. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $ 116,500. The following information is available on January 31, 2024: a.) Depreciation on the equipment for the month of January is calculated using the straight-line method. The company records an adjusting entry for $3,610 for estimated future uncollectible accounts. The company has accrued interest on notes receivable for January. Unpaid salaries owed to employees at the end of January are $32,900. The company accrued income taxes at the end of January $9,300.
On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 59,000 Accounts Receivable 25, 600 Allowance for Uncollectible Accounts $ 2,500 Inventory 36,600 Notes Receivable (5%, due in 2 years) 15,600 Land 158,000 Accounts Payable 15, 100 Common Stock 223,000 Retained Earnings 54,200 Totals $294,800 $294,800 During January 2024, the following transactions occur: January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,800. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $ 116,500. The following information is available on January 31, 2024: a.) Depreciation on the equipment for the month of January is calculated using the straight-line method. The company records an adjusting entry for $3,610 for estimated future uncollectible accounts. The company has accrued interest on notes receivable for January. Unpaid salaries owed to employees at the end of January are $32,900. The company accrued income taxes at the end of January $9,300.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 59,000
Accounts Receivable 25, 600
Allowance for Uncollectible Accounts $ 2,500
Inventory 36,600
Notes Receivable (5%, due in 2 years) 15,600
Land 158,000
Accounts Payable 15, 100
Common Stock 223,000
Retained Earnings 54,200
Totals $294,800 $294,800
During January 2024, the following transactions occur:
January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service
life.
January 4 Pay cash on accounts payable, $9,800.
January 8 Purchase additional inventory on account, $85,900.
January 15 Receive cash on accounts receivable, $22,300.
January 19 Pay cash for salaries, $30,100.
January 28 Pay cash for January utilities, $16,800.
January 30 Firework sales for January total $223,000. All of these sales are on account. The cost of the units sold is $
116,500.
The following information is available on January 31, 2024:
a.)
Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company records an adjusting entry for $3,610 for estimated future uncollectible accounts.
The company has accrued interest on notes receivable for January.
Unpaid salaries owed to employees at the end of January are $32,900.
The company accrued income taxes at the end of January $9,300.
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