Question

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit Credit 27,900 15,600 Accounts Receivable Allowance for Uncollectible Accounts 4,800 Supplies Notes Receivable (6%, due in 2 years) 4,500 24,000 80,900 Land Accounts Payable 9,700 Common Stock 104,000 Retained Earnings 34,400 $152,900 $152,900 Totals During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $55,100 January January 15 Write off accounts receivable as uncollectible, $4,500. January 20 Pay cash for salaries, $33,400. January 22 Receive cash on accounts receivable, $90,000. January 25 Pay cash on accounts payable, $7,500. January 30 Pay cash for utilities during January, $15,700 6 Provide services to customers on account, $92,400. The following information is available on January 31, 2021. a. The company estimates future uncollectible accounts. The company determines $4,900 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. 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.) b. Supplies at the end of January total $950. c. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. d. Unpaid salaries at the end of January are $35,500. General General Income Trial Balance Requirement Balance Sheet Analysis Ledger Journal Statement 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 the adjusting entries in the 'General Journal' tab (these are shown as items 8-11) 3. Review the adjusted 'Trlal Balance' as of January 31, 2021, In the 'Tri 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 the 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. s Balance' tab. General Journal Requirement Utilities Expense 15,700 7 Jan 30, 2021 Cash 15,700 Jan 31, 2021 Bad Debt Expense 5,705 1,655x Allowance for Uncollectible Accounts 3,550 Jan 31, 2021 Supplies Expense Supplies 3,550 Interest Receivable 120 10 Jan 31, 2021 Interest Revenue 120 Jan 31, 2021 Salaries Expense 35,500 11 Salaries Payable 35,500 12 Jan 31, 2021 Service Revenue 147,500 Interest Revenue 120 35,500X Jan 31, 2021 Accounts Payable 13 Salaries Expense 68,900 Supplies Expense 3,550 Utilities Expense 15,700 Bad Debt Expense

Answer 1

3D Family Fireworks Journal Enteries Debit in $ Credit in $ Particulars Date 2.1.2021 Cash a/c 55100 Dr. 55100 To Service Revenue (Services provided for cash) Accounts Receivable a/c Dr. 6.1.2021 92400 92400 To Service Revenue on account) |(Services provided 15.1.2021 Allowance for uncollectible accounts 4500 To Accounts Receivable 4500 (Uncollectibles written off) 20.1.2021 Salary Expense a/c Dr. 33400 To Cash 33400 (Salary paid in cash) 22.1.2021 Cash a/c 90000 Dr. To A unts Receivable 90000 (Cash received from debtors) 25.1.2021 Accounts Payable a/c Dr 7500 To Cash 7500 (Creditors paid) 30.1.2021 Utilities Expense a/c Dr. 15700 To Cash 15700 (Utilities paid in cash)

Adjusting Enteries Debit in $ Credit in $ Particulars Date 31.1.2021 Bad Debts a/c Dr. 1110 To Allowance for uncollectible accounts 1110 (Bad debts estimated) 4900 x 20% =980430 1410 300 1110 15600 92400 4500-90000 4900 8600 x 5% 430 Allowance for Uncollectibles 4800 45000 300 31.1.2021 Supplies Expense a/c Dr. 3550 To Supplies (Supplies Expensed) 4500-950 3550 3550 31.1.2021 Interest Receivable a/c Dr. 120 To Interest Income 120 (Interest Revenue accrued) 24000 x 6% x 1/12 120 31.1.2021 Salary Expense a/c Dr. 35500 To Salary Payable 35500 (Salary accrued)

Worksheet For the period ending 31.1.2021 Adjustments Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash 116400 116400 Accounts Receivable 13500 13500 Allowance for uncollectible accounts 300 1110 1410 Interest Receivable 120 120 Supplies 4500 3550 950 24000 24000 Notes Receivable 6% Land 80900 80900 Accounts Payable 2200 2200 Salary Payable 35500 35500 Common Stock 104000 104000 Retained Earnings 34400 34400 Service Revenue 147500 147500 Interest Income 120 120 Salary Expense 33400 35500 68900 Utilities Expense 15700 15700 Bad Debts 1110 1110 Supplies Expense 3550 3550 Totals 28840 028 251 3251

Statement of Income For the period ending 31.1.2021 Service Revenue 147500 Interest Income 120 Total Revenue 147620 Less: Salary Expense 68900 Utilities Expense 15700 Bad Debts 1110 Supplies Expense 3550 89260 Net Income 58360 Statement of Retained Earnings For the period ending 31.1.2021 Beginning 34400 Net Income 58360 92760

Balance sheet As at 31.1.2021 Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Assets Current Liabilities Current Assets Accounts Payable Cash 116400 2200 Accounts Receivable Salary Payable 35500 13500 37700 Allowance for uncollectible accounts -1410 Interest Receivable 120 Supplies 129560 950 Shareholders Equity Non Current Assets Notes Receivable 6% 24000 Common Stock 104000 80900 Retained Earnings Land 92760 196760 234460 Total Liabilities & Equity Total Assets 234460