The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Debit $ 60.600 Credit 28.800 $ 4,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 38,200 34.800 174,000 16,700 239.000 76,600 $336,400 $336,400 During January 2021, the following transactions occur: January 1 Purchase equipment for $21,400. The company estimates a residual value of $3,400 and a five-year service life. January 4 Pay cash on accounts payable, $11,400. January 8 Purchase additional inventory on account, $101,900. January 15 Receive cash on accounts receivable, $23,900. January 19 Pay cash for salaries, $31,700. January 28 Pay cash for January utilities, $18, 400. January 30 Sales for January total $239,000. All of these sales are on account. The cost of the units sold is $124.500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
b. The company estimates future uncollectible accounts. The company determines $4,900 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
c. Accrued interest revenue on notes receivable for January.
d. Unpaid salaries at the end of January are $34,500.
e. Accrued income taxes at the end of January are $10,900.
1. Record each of the transactions listed above.
2. Record the adjusting entries on January 31 for the above transactions.
3. Prepare an adjusted trial balance as of January 31, 2021.
4. Prepare a classified balance sheet as of January 31, 2021
5. Record closing entries.