70.2K

Verified Solution

Link Copied!

On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Debit $ 102,500 36,600 153,300 80,300 133,000 Accounts Cash Accounts receivable Inventory Land Buildings Allowance for uncollectible accounts Accumulated depreciation Accounts payable Bonds payable Discount on bonds payable Common stock Retained earnings Totals 31,300 Credit $ 3,100 10,900 32,000 133,000 213,000 145,000 $ 537,000 $ 537,000 During January 2024, the following transactions occurred: January 1 Borrowed $113,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,184.61 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $113,000. The 6% bonds pay interest semiannually each June 30 and December 31. January 4 Received $32,300 from customers on accounts receivable. January 10 Paid cash on accounts payable, $24,000. January 15 Paid cash for salaries, $30,200. January 30 Firework sales for the month totalled $201,200. Sales included $66,300 for cash and $134,900 on account. The cost of the units sold was $119,000. January 31 Paid the first monthly installment of $2,185 related to the $113,000 borrowed on January 1. The following information is available on January 31, 2024.

During January 2024, the following transactions occurred: January 1 Borrowed $113,000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $2,184.61 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $113,000. The 6$ bonds pay interest semiannually each June 30 and December 31 . January 4 Received $32,300 from customers on accounts receivable. January 10 Paid cash on accounts payable, $24,000. January 15 Paid cash for salaries, $30,200. January 30 Firework sales for the month totalled $201,200. Sales included $66,300 for cash and $134,900 on account. The cost of the units sold was $119,000. January 31 Paid the first monthly instaltment of $2,185 related to the $113,000 borrowed on January 1 . The following information is available on January 31,2024. The following information is available on January 31, 2024. 1. Depreciation on the building for the month of January is calculated using the straight-fine method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,800. 2. At the end of January, $4,300 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts recelvable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $27,400. 4. Accrued income taxes at the end of January are $6,300. During January 2024, the following transactions occurred: January 1 Borrowed $113,000 from Captive Credit Corporation. The installment note bears interest at 68 annually and matures in 5 years. Payments of $2,184.61 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $113,000. The 6$ bonds pay interest semiannually each June 30 and December 31 . January 4 Received $32,300 from customers on accounts receivable. January 10 Paid cash on accounts payable, $24,000. January 15 Paid cash for salaries, $30,200. January 30 Firework sales for the month totalled $201,200. Sales included $66,300 for cash and $134,900 on account. The cost of the units sold was $119,000. January 31 Paid the first monthly instaltment of $2,185 related to the $113,000 borrowed on January 1 . The following information is available on January 31,2024. The following information is available on January 31, 2024. 1. Depreciation on the building for the month of January is calculated using the straight-fine method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,800. 2. At the end of January, $4,300 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts recelvable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $27,400. 4. Accrued income taxes at the end of January are $6,300

Answer & Explanation Solved by verified expert

See Answer