50.1K

Verified Solution

Link Copied!

On January 1, 2021, the general ledger of Tripley Company included the following account balances: Credit Debit $310,000 80,000 $ 41,000 34,000 274,000 Accounts Cash Accounts receivable Allowance for uncollectible accounts Inventory Building Accumulated depreciation Land Accounts payable Notes payable (8%, due in 3 years) Common stock Retained earnings Totals 50,000 260,600 220,000 276,000 128,600 279,000 $994,600 $958,600 The $34,000 beginning balance of inventory consists of 340 units, each costing $100. During January 2021, the company had the following transactions: January 2 Lent $60,000 to an employee by accepting a 6% note due in six months. 5 Purchased 5,500 units of inventory on account for $605,000 $110 each) with terms 1/10, n/30. 8 Returned 100 defective units of inventory purchased on January 5. 15 Sold 5,300 units of inventory on account for $901,000 ($170 each) with terms 2/10, n/30. 17 Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future. 20 Received cash from customers on accounts receivable. This amount includes $40,000 from 2020 plus amount receivable on sale of 4,700 units sold on January 15. 21 Wrote off remaining accounts receivable from 2020. 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 5,100 units on January 5. 28 Paid cash for salaries during January, $68,000. 29 Paid cash for utilities during January, $50,000. 30 Paid dividends, $7,000. Month-end adjusting entries: a. Of the remaining accounts receivable, the company estimates that 10% will not be collected. b. Accrued interest revenue on notes receivable for January. c. Accrued interest expense on notes payable for January. d. Accrued income taxes at the end of January for $9,000. e. Depreciation on the building, $6,000. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) On January 1, 2021, the general ledger of Tripley Company included the following account balances: Credit Debit $310,000 80,000 $ 41,000 34,000 274,000 Accounts Cash Accounts receivable Allowance for uncollectible accounts Inventory Building Accumulated depreciation Land Accounts payable Notes payable (8%, due in 3 years) Common stock Retained earnings Totals 50,000 260,600 220,000 276,000 128,600 279,000 $994,600 $958,600 The $34,000 beginning balance of inventory consists of 340 units, each costing $100. During January 2021, the company had the following transactions: January 2 Lent $60,000 to an employee by accepting a 6% note due in six months. 5 Purchased 5,500 units of inventory on account for $605,000 $110 each) with terms 1/10, n/30. 8 Returned 100 defective units of inventory purchased on January 5. 15 Sold 5,300 units of inventory on account for $901,000 ($170 each) with terms 2/10, n/30. 17 Customers returned 200 units sold on January 15. These units were initially purchased by the company on January 5. The units are placed in inventory to be sold in the future. 20 Received cash from customers on accounts receivable. This amount includes $40,000 from 2020 plus amount receivable on sale of 4,700 units sold on January 15. 21 Wrote off remaining accounts receivable from 2020. 24 Paid on accounts payable. The amount includes the amount owed at the beginning of the period plus the amount owed from purchase of 5,100 units on January 5. 28 Paid cash for salaries during January, $68,000. 29 Paid cash for utilities during January, $50,000. 30 Paid dividends, $7,000. Month-end adjusting entries: a. Of the remaining accounts receivable, the company estimates that 10% will not be collected. b. Accrued interest revenue on notes receivable for January. c. Accrued interest expense on notes payable for January. d. Accrued income taxes at the end of January for $9,000. e. Depreciation on the building, $6,000. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Answer & Explanation Solved by verified expert

See Answer