In: Accounting
[The following information applies to the questions displayed below.]
On January 1, 2018, the general ledger of 3D Family Fireworks
includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 26,700 | ||||
Accounts Receivable | 15,000 | |||||
Allowance for Uncollectible Accounts | $ | 3,600 | ||||
Supplies | 3,900 | |||||
Notes Receivable (6%, due in 2 years) | 18,000 | |||||
Land | 80,300 | |||||
Accounts Payable | 8,500 | |||||
Common Stock | 98,000 | |||||
Retained Earnings | 33,800 | |||||
Totals | $ | 143,900 | $ | 143,900 | ||
During January 2018, the following transactions occur:
January 2 Provide services to customers for cash, $49,100.
January 6 Provide services to customers on account, $86,400.
January 15 Write off accounts receivable as uncollectible,
$3,300.
January 20 Pay cash for salaries, $32,800.
January 22 Receive cash on accounts receivable, $84,000.
January 25 Pay cash on accounts payable, $6,900.
January 30 Pay cash for utilities during January, $15,100.
Record each of the transactions listed above.
a. The company estimates future uncollectible accounts. The
company determines $4,300 of accounts receivable on January 31 are
past due, and 20% of these accounts are estimated to be
uncollectible. The remaining accounts receivable on January 31 are
not past due, and 5% of these accounts are estimated to be
uncollectible.
b. Supplies at the end of January total $950.
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 $34,900.
2. Record adjusting entries on January 31 for the above transactions.
3. Prepare an adjusted trial balance as of January 31, 2018.