Question

On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 11, 200 34,899 $ 1,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals 152,990 67,300 120,00 9,600 17,790 299, 155, 480 $384,500 $384,500 During January 2021, the following transactions occur January Borrow $100,eee from Captive Credit Corporation. The installment note bears interest at 7% annually and matures in 5 years. Payments of $1,980 are required at the end of each month for 6 months. January Receive $31,eee from customers on accounts receivable. January Pay cash on accounts payable, $11,080. le January Pay cash for salaries, $28,900. January Firework sales for the month total $195, eee. Sales include $65,800 for cash and $130,000 on account. The cost 30 of the units sold is $112,5ee. January Pay the first monthly installment of $1,980 related to the $109,080 borrowed on January 1. Round your interest 31 calculation to the nearest dollar. 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) Answer is not complete. No General Journal Credit Date January 01 Cash 0 0 Accounts Receivable Debit 100,000 7.600 % 3.600 X 13,000 X Supplies Equipment Notes Payable (Current) 1.980 X OOO OOO January 04 Accounts Payable 31,000 January 15 Salaries Expense 28.900 January 30 Cash 65,000 130.000 Sales Revenue January 31 Interest Expense 0

Answer 1

Journal Entries
Date	Particulars			Debit	Credit
1-Jan	Cash			$      100,000
	To Notes Payable				$      100,000
4-Jan	Cash			$         31,000
	To Accounts Receivable				$         31,000
10-Jan	Accounts Payable			$         11,000
	To Cash				$         11,000
15-Jan	Salaries Expense			$         28,900
	To Cash				$         28,900
30-Jan	Cash			$         65,000
	Accounts Receivable			$      130,000
	To Sales Revenue				$      195,000
	Cost of Goods Sold			$      112,500
	To Finished Goods Inventory				$      112,500
31-Jan	Interest Expense			$              583
	Notes Payable			$           1,980
	To Cash				$           2,563

Note:	Interest Expense =		$ 100000 x 7% x 1/12
		=	$       583