Question

[The following information applies to the questions displayed below] On January 1, 2021, the general ledger of Freedom Fireworks Includes the following account balances: Credit Debit $ 11.200 34,680 $ 1,820 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals 152,689 67.389 120,680 9.680 17.709 200.000 155489 $384,5ee During January 2021, the following transactions occur: January Borrow $180,eee from Captive Credit Corporation. The installment note bears interest at 7% annually and matures in 5 years. Payments of $1,98e are required at the end of each month for 60 months. January Receive $31,00 from customers on accounts receivable. January Pay cash on accounts payable, $11,680. January Pay cash for salaries, $28,9ee. January Firework sales for the month total $195,eee. Sales include $65,880 for cash and $130,880 on account. The cost 38 of the units sold is $112,500. January Pay the first monthly installment of $1,988 related to the $180,860 borrowed on January 1. Round your interest 31 calculation to the nearest dollar. 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) Date Credit No 1 Answer is complete but not entirely correct. General Journal Cash Notes Payable (Long-term) Debit 100,000 January 01 100,000 January 04 31,000 Cash Accounts Receivable 31,000 3 January 10 January 10 11,000 Accounts Payable Cash 11,000 January 15 28,900 Salaries Expense Cash 28,900 5 January 30 January 30 o Cash Cash Accounts Receivable Sales Revenue 65,000 130,000 195,000 6 January 30 112,500 Cost of Goods Sold Inventory 112,500 January 31 Interest Expense Notes Payable (Long-term) 583 1,980 Cash 2,563 % Cost of Goods Sold &

Answer 1

Journal

No	Date	Account Title and Explanation	Debit	Credit
7	January 31	Interest expense	583
		Note payable (Long-term)	1,397
		Cash		1,980

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