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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	23,900
Accounts Receivable		13,600
Allowance for Uncollectible Accounts					$	1,400
Supplies		2,500
Notes Receivable (6%, due in 2 years)		20,000
Land		77,000
Accounts Payable						7,200
Common Stock						96,000
Retained Earnings						32,400
Totals	$	137,000			$	137,000

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $35,100.
January		6		Provide services to customers on account, $72,400.
January		15		Write off accounts receivable as uncollectible, $1,000.
January		20		Pay cash for salaries, $31,400.
January		22		Receive cash on accounts receivable, $70,000.
January		25		Pay cash on accounts payable, $5,500.
January		30		Pay cash for utilities during January, $13,700.

3. Prepare an adjusted trial balance as of January 31, 2021.

Answer 1

Accounts	Unadjusted trial balance		Adjustments to be made	Adjusted trial balance
	Debit $	Credit $		Debit $	Credit $
Cash	$23,900.00		$54,500.00	$78,400.00
Accounts Receivables	$13,600.00		$2,400.00	$16,000.00
Allowance for uncollectible accounts		$1,400.00	$1,000.00		$2,400.00
Notes receivable	$20,000.00		-	$20,000.00
Interest receivable
Supplies	$2,500.00			$2,500.00
Land	$77,000.00		-	$77,000.00
Accounts payable		$7,200.00	-$5,500.00		$1,700.00
Salary payable
Common stock		$96,000.00	-		$96,000.00
Retained earnings		$32,400.00	-		$32,400.00
Revenue			$107,500.00		$107,500.00
Interest revenue
Baddebt expense			$1,000.00	$1,000.00
Salary expense			$31,400.00	$31,400.00
Utilities expense			$13,700.00	$13,700.00
Supplies expense
Totals	$137,000.00	$137,000.00		$240,000.00	$240,000.00

Adjustment for Cash = 35100-31400+70000-5500-13700=54500

Account Receivable = 72400-70000=2400