On January 1, 2021, 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 2021, 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.
The following information is available on January 31, 2021.
1. The company estimates future uncollectible accounts.
2. The company determines $4,300 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible.
3. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
4. Supplies at the end of January total $950.Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.Unpaid salaries at the end of January are $34,900.
Required:
1. Record each of the transactions listed above in the ‘General Journal’ tab (these are shown as items 1–7). Review the ‘General Ledger’ and the ‘Trial Balance’ tabs to see the effect of the transactions on the account balances.
2. Record adjusting entries on January 31. in the ‘General Journal’ tab (these are shown as items 8-11).
3. Review the adjusted ‘Trial Balance’ as of January 31, 2021, in the ‘Trial Balance’ tab.
4. Prepare an income statement for the period ended January 31, 2021, in the ‘Income Statement’ tab).
5. Prepare a classified balance sheet as of January 31, 2021, in the ‘Balance Sheet’ tab.
6. Record closing entries in the ‘General Journal’ tab (these are shown as items 12 and 13).
7. Using the information from the requirements above, complete the ‘Analysis’ tab.