Question

Clooney Corp

Required information On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,100 46,200 $ 4,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 20,000 46,000 15,000 1,500 28,500 50,000 35,000 33, 100 $152,300 $152,300 During January 2021, the following transactions occur January 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $147,000. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 < Prev 2 3 4 . 7 of 7 !!! Next >

Answer 1

Credit Debit $500 $500 $12,500 $12,500 $250 $250 $13,000 $13,000 $3,000 $3,000 Adjusting Entry Date Particulars 31-Jan-21 Depreciation Accumulated Depreciation (To Record depreciation on equipment) 31-Jan-21 Bad Debt Expense Allowance for Uncollectible Accounts (To Record estimated uncollectible accounts) 31-Jan-21 Interest Expense Accrued Interest Expense (To Record accrued interest expense on notes) 31-Jan-21 Income Tax Provision for Income Tax (To Record income tax provision) 31-Jan-21 Gift Card Liability Sales (To Record redemption of gift card) Working Depreciation Cost Less: Salvage Value Net Useful life (in years) Per Year Depreciation ($12000/2] Depreciation for January ($6000/12] Allowance for Uncollectible Accounts Opening Balance in Accounts Receivable Add: Sales for First half Add: Sales for Second half Less: Collection Received Less : Write off as Uncollectible Closing Balance of Accounts Receivable Estimate for Uncollectible Amount On $11000 @ 30% Remaining @ 3% [($183000-$11000)x5%] Closing Balance in Allowance for Uncollectible Account Add: Debit Balance in Uncollectible account (before adjusting entry) [-($4200-$4800)] Entry for the month $15,000 ($3,000) $12,000 $6,000 $500 $46,200 $1,35,000 $1,32,000 ($1,25,400) ($4,800) $1,83,000 $3,300 $8,600 $11,900 $600 $12,500