Question

I need to find the numbers I have missing... (Cash, Accounts Receivables, Inventory, Allowance for uncollectible accounts, Accounts payable, Bad debt expense)

Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7)

[The following information applies to the questions displayed below.]
  
On January 1, Year 1, the general ledger of a company includes the following account balances:
  

Accounts	Debit				Credit
Cash	$	59,500
Accounts Receivable		26,600
Allowance for Uncollectible Accounts					$	3,000
Inventory		37,100
Notes Receivable (5%, due in 2 years)		21,600
Land		163,000
Accounts Payable						15,600
Common Stock						228,000
Retained Earnings						61,200
Totals	$	307,800			$	307,800

  
During January Year 1, the following transactions occur:
  

January		1		Purchase equipment for $20,300. The company estimates a residual value of $2,300 and a five-year service life.
January		4		Pay cash on accounts payable, $10,300.
January		8		Purchase additional inventory on account, $90,900.
January		15		Receive cash on accounts receivable, $22,800.
January		19		Pay cash for salaries, $30,600.
January		28		Pay cash for January utilities, $17,300.
January		30		Sales for January total $228,000. All of these sales are on account. The cost of the units sold is $119,000.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $3,800 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,400.
5. Accrued income taxes at the end of January are $9,800.

Exercise 7-21B Part 3

3. Prepare an adjusted trial balance as of January 31, Year 1.
  

Adjusted Trial Balance

January 31, Year 1

Accounts Debit    Credit

Cash

Accounts Receivable

Inventory

Note Receivable21,600

Land163,000

Allowance for Uncollectible Accounts

Accounts Payable

Common Stock228,000

Sales Revenue228,000

Retained Earnings61,200

Equipment20,300

Salaries Expense64,000

Utilities Expense17,300

Income Tax Expense9,800

Cost of Goods Sold119,000

Depreciation Expense300

Bad Debt Expense

Interest Receivable90

Interest Revenue90

Salaries Payable33,400

Accumulated Depreciation300

Income Tax Payable9,800

Totals $415,390 $560,790

Answer 1

3) Adjusted Trial Balance
January 31, Year 1
Accounts	Debit	Credit
Cash ($59,500 - $20,300 - $10,300 + $22,800 - $30,600 - $17,300)	$3,800
Accounts Receivable ($26,600 - $22,800 + $228,000)	$231,800
Allowance for Uncollectible Accounts (see notes)		$6,460
Inventory ($37,100 + $90,900 - $119,000)	$9,000
Notes Receivable (5%, due in 2 years)	$21,600
Land	$163,000
Accounts Payable ($15,600 - $10,300 + $90,900)		$96,200
Common Stock		$228,000
Retained Earnings ($61,200 + $31,530)		$92,730
Accumulated Depreciation - Equipment		$300
Equipment	$20,300
Salaries Payable		$33,400
Income Taxes Payable		$9,800
Interest Receivable	$90
Utilities	$17,300
Totals	$466,890	$466,890
Working notes 1:
Income Statement
Sales Revenue	$228,000
Less: Cost of Goods Sold	($119,000)
Gross Profit	$109,000
Less: Operating Expenses:
Salaries Expense ($30,600 + $33,400)	($64,000)
Depreciation Expense ($20,300 - $2,300 = $18,000/5 years*1/12 months)	($300)
Bad Debt Expense (see working note)	($3,460)
Operating Income	$41,240
Add: Other Revenue:
Interest Revenue ($21,600*5/100*1/12 months)	$90
Income before income taxes	$41,330
Less: Inome tax Expense	($9,800)
Net Income	$31,530
Working notes 2:
Uncollectible accounts ($3,800*50/100)	$1,900
Uncollectible accounts in remaining accounts receivable ($231,800 - $3,800 = $228,000*2/100)	$4,560
Total estimated uncollectible accounts	$6,460
Less: Credit balance in allowance for uncollectible accounts	($3,000)
Bad Debts	$3,460