Question

In: Accounting

On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...

On January 1, 2020, the general ledger of a Company includes the following account balances:

Accounts Debit Credit
Cash $ 84,000
Accounts Receivable 53,000
Allowance for Uncollectible Accounts $ 5,000
Inventory 44,000
Building 84,000
Accumulated Depreciation 24,000
Land 214,000
Accounts Payable 34,000
Notes Payable (8%, due in 3 years) 48,000
Common Stock 114,000
Retained Earnings 254,000
Totals $ 479,000 $ 479,000


The $44,000 beginning balance of inventory consists of 400 units, each costing $110.

During January 2020, the following transactions occurred:

January 2 Received a $34,000 6-month, 6% note on a loan the company made to another company
January 5 Purchased 5,000 units of inventory on account for $500,000 ($100 each) with terms 1/10, n/30.
January 8 Returned 130 defective units of inventory purchased on January 5.
January 15 Sold 4,800 units of inventory on account for $576,000 ($120 each) with terms 2/10, n/30. Record 2 entries for this transaction.
January 17 Customers returned 100 units sold on January 15. These units were originally purchased by the company on January 5. The units were placed in inventory to be sold in the future. Record 2 entries for this transaction.
January 20 Received cash from customers on accounts receivable. This amount includes $50,000 from 2019 plus amount receivable on sale of 4,200 units sold on January 15.
January 21 Wrote off remaining accounts receivable from 2019.
January 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 4,600 units on January 5.
January 28 Paid cash for salaries during January, $42,000.
January 29 Paid cash for utilities during January, $24,000.
January 30 Paid dividends, $3,000.


The following information is available on January 31, 2020 for adjusting entries at the end of the month.

  1. Company estimated that 10% of the January 31 accounts receivable balance will not be collected.
  2. Accrued interest on notes receivable for January.
  3. Accrued interest on notes payable for January.
  4. Accrued income taxes at the end of January for $6,400.
  5. Depreciation on the building, $3,400.

Please record ALL journal entries (January 2 - January 31)

Solutions

Expert Solution

Please refer the following image for the solution:

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

On January 1, 2018, the general ledger of a company includes the following account balances: Accounts...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 71,000 Accounts Receivable 41,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 31,000 Building 71,000 Accumulated Depreciation 11,000 Land 201,000 Accounts Payable 21,000 Notes Payable (9%, due in 3 years) 34,000 Common Stock 101,000 Retained Earnings 243,000 Totals $ 415,000 $ 415,000 The company accounts for all inventory transactions using the perpetual FIFO method. Purchases and sales of inventory are recorded...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 90,000 Accounts Receivable 60,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 50,000 Building 90,000 Accumulated Depreciation 30,000 Land 220,000 Accounts Payable 40,000 Notes Payable (8%, due in 3 years) 57,000 Common Stock 120,000 Retained Earnings 258,000 Totals $ 510,000 $ 510,000 The company accounts for all inventory transactions using the perpetual FIFO method. Purchases and sales of inventory are recorded...
On January 1, 2019, the general ledger of a company includes the following account balances: Accounts...
On January 1, 2019, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 76,000 Accounts Receivable 47,000 Allowance for Uncollectible Accounts $ 7,000 Inventory 36,000 Building 76,000 Accumulated Depreciation 16,000 Land 206,000 Accounts Payable 26,000 Notes Payable (7%, due in 3 years) 42,000 Common Stock 106,000 Retained Earnings 244,000 Totals $ 441,000 $ 441,000 The company accounts for all inventory transactions using the perpetual FIFO method. Purchases and sales of inventory are recorded...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 101,500 Accounts Receivable 34,600 Inventory 152,300 Land 70,300 Buildings 123,000 Allowance for Uncollectible Accounts $ 2,100 Accumulated Depreciation 9,900 Accounts Payable 21,000 Bonds Payable 123,000 Discount on Bonds Payable 30,300 Common Stock 203,000 Retained Earnings 153,000 Totals $ 512,000 $ 512,000 During January 2021, the following transactions occurred: January 1 Borrowed $103,000 from Captive Credit Corporation. The installment note bears...
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances: Accounts...
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 60,000 Accounts Receivable 27,600 Allowance for Uncollectible Accounts 3,500 Inventory 37,600 Notes Receivable (5%, due in 2 years) 27,600 Land 168,000 Accounts Payable 16,100 Common Stock 233,000 Retained Earning 68,200 Totals $ 320,800 $ 320,800 During January 2018, the following transactions occur: January 1. Purchase equipment for $20,800. The company estimates a residual value of $2,800 and a five-year service...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 4,450 Accounts Receivable 9,450 Supplies 3,450 Equipment 35,000    Accumulated Depreciation $ 7,800 Accounts Payable 5,800 Utilities Payable 6,800 Deferred Revenue 0 Common Stock 22,500 Retained Earnings 9,450 Totals $ 52,350 $ 52,350 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $19,500, and on account, $64,500. 2. March 13...
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts...
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 44,500 Accounts Receivable 28,700 Land 113,800 Accounts Payable 15,600 Notes Payable (due in 2 years) 33,000 Common Stock 103,000 Retained Earnings 35,400 Totals $ 187,000 $ 187,000 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $65,400. 2. February 25 Provide services to customers for cash, $76,800. 3. March...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 102,700 Accounts Receivable 37,000 Inventory 153,500 Land 82,300 Buildings 135,000 Allowance for Uncollectible Accounts $ 3,300 Accumulated Depreciation 11,100 Accounts Payable 34,200 Bonds Payable 135,000 Discount on Bonds Payable 31,500 Common Stock 215,000 Retained Earnings 143,400 Totals $ 542,000 $ 542,000 During January 2021, the following transactions occurred: January 1 Borrowed $115,000 from Captive Credit Corporation. The installment note bears...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 13,200 Accounts Receivable 38,000 Inventory 154,000 Land 87,300 Buildings 140,000 Allowance for Uncollectible Accounts $ 3,800 Accumulated Depreciation 11,600 Accounts Payable 39,700 Common Stock 220,000 Retained Earnings 157,400 Totals $ 432,500 $ 432,500 During January 2021, the following transactions occur: January 1 Borrow $120,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5...
On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $ 24,500 Accounts Receivable 5,900 Supplies 3,800 Land 57,000 Accounts Payable $ 3,900 Common Stock 72,000 Retained Earnings 15,300 Totals $ 91,200 $ 91,200 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $8,100 ($675/month). January 9 Purchase additional supplies on account, $4,200. January 13 Provide services to customers on account, $26,200. January...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT