Question

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	59,800
Accounts Receivable		27,200
Allowance for Uncollectible Accounts					$	3,300
Inventory		37,400
Notes Receivable (5%, due in 2 years)		25,200
Land		166,000
Accounts Payable						15,900
Common Stock						231,000
Retained Earnings						65,400
Totals	$	315,600			$	315,600

  

During January 2021, the following transactions occur:

January		1		Purchase equipment for $20,600. The company estimates a residual value of $2,600 and a five-year service life.
January		4		Pay cash on accounts payable, $10,600.
January		8		Purchase additional inventory on account, $93,900.
January		15		Receive cash on accounts receivable, $23,100.
January		19		Pay cash for salaries, $30,900.
January		28		Pay cash for January utilities, $17,600.
January		30		Sales for January total $231,000. All of these sales are on account. The cost of the units sold is $120,500.

The following information is available on January 31, 2021.

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $4,100 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.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,700.
5. Accrued income taxes at the end of January are $10,100.

I need help completing the general journal, income statement, balance sheet, and analysis please.

Answer 1

TNT Fireworks Journal entries Account Debit Credit Calculation Date 20,600 1-Jan Equipment Cash 20,600 4-Jan Accounts Payable 10,600 Cash 10,600 8-Jan Inventory Accounts Payable 93,900 93,900 15-Jan Cash 23,100 Accounts Receivable 23,100 19-Jan Salaries expense 30,900 Cash 30,900 28-Jan Utilities Expense 17,600 Cash 17,600 30-Jan Accounts Receivable 231,000 Sales Revenue 231,000 Cost of goods sold 120,500 120,500 Inventory Req 2 Adjusting entries 31-Jan Depreciation expense =(20,600-2,600)/5*1/12 300 Accumulated Depreciation-Equipment 300 31-Jan Bad debts expense Workings below 5,680 Allowance for Uncollectible Accounts 5,680 =25,200*5%*1/12 31-Jan Accrued Interest Revenue 105 Interest Revenue 105 31-Jan Salaries expense 33,700 Salaries Payable 33,700 31-Jan Income tax expense 10,100 Income tax Payable 10,100 Req 6 Closing entries 31-Jan Sales Revenue 231,000 Interest Revenue 105 Retained Earnings 231,105 31-Jan Retained Earnings 218,780 Cost of goods sold 120,500 Salaries expense 64,600 Utilities Expense 17,600 Depreciation expense Bad debts expense 300 5,680 Income tax expense 10,100 Wkgs Bad debts expense Accounts Receivable Ucollectible % Uncollectible Amount Accts Rec 4,100 50% Past due 2,050 231,000 Not past due 6,930 Total 235,100 8,980 Allowance for Uncollectible Accounts Adjusted Ending Balance Beginning Balance Bad debts expense 8,980 3,300 5,680

TNT Fireworks TAccounts Date Date Date Date Debit Debit Credit Debit Credit Credit Debit Credit Date Date Date Date Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory $ 37,400 Op bal Op bal $ 59,800 Op bal 8-Jan $ 93,900 $ 27,200 $ 3,300 1-Jan $ 20,600 Op bal 15-Jan $ 23,100 4-Jan $ 10,600 15-Jan $ 23,100 30-Jan $231,000 31-Jan $ 5,680 30-Jan $120,500 19-Jan $ 30,900 28-Jan $ 17,600 $ 8,980 $ 10,800 Bal. 2$ $235,100 Bal. Bal. Bal. 3,200 Notes Receivable (5%, due in 2 years) Accrued Interest Revenue Land Equipment $ 25,200 Op bal $166,000 Op bal 1-Jan $ 20,600 31-Jan $ 105 $ 25,200 $ 20,600 $166,000 Bal. Bal. Bal. Bal. 105 Salaries Payable Accumulated Depreciation-Equipment 31-Jan $ Accounts Payable 4-Jan $ 10,600 op bal Income tax Payable $ 15,900 8-Jan $ 93,900 31-Jan $ 33,700 31-Jan $ 10,100 300 $ 33,700 $ 99,200 $ 10,100 Bal. Bal. Bal. Bal. 300 Retained Earnings Common Stock Op bal $ 65,400 Op bal $231,000 $ 65,400 $231,000 Bal. Bal. Salaries expense Sales Revenue Cost of goods sold Interest Revenue 31-Jan $ 30-Jan $231,000 19-Jan $ 30,900 30-Jan $120,500 105 31-Jan $ 33,700 $ 64,600 Bal. Bal. $231,000 $120,500 Bal. Bal. 105 Bad debts expense Utilities Expense Depreciation expense Income tax expense 31-Jan $ 5,680 31-Jan $ 10,100 28-Jan $ 17,600 31-Jan $ 300 $ 17,600 $ 10,100 Bal. Bal. Bal. Bal. 300 5,680

Req 3 Adjusted TB Unadjusted TB TNT Fireworks Debit Debit Credit Credit Account Names Cash 3,200 3,200 Accounts Receivable 235,100 235,100 Allowance for Uncollectible Accounts 3,300 8,980 10,800 Inventory 10,800 Accrued Interest Revenue 105 Notes Receivable (5%, due in 2 years) 25,200 25,200 Land 166,000 166,000 Equipment 20,600 20,600 Accumulated Depreciation-Equipment Accounts Payable 99,200 99,200 Salaries Payable 33,700 Income tax Payable 10,100 231,000 Common Stock 231,000 Retained Earnings 65,400 65,400 Sales Revenue 231,000 231,000 Cost of goods sold 120,500 120,500 Interest Revenue 105 Salaries expense 30,900 64,600 Utilities Expense 17,600 17,600 Depreciation expense 300 Bad debts expense 5,680 Income tax expense 10,100 Totals 629,900 629,900 679,785 679,785

Req 4 TNT Fireworks Income Statement For Month ended Jan 31, 2021 Revenues Sales Revenue 231,000 Cost of goods sold 120,500 Gross Profit 110,500 Operating Expenses Salaries expense 64,600 Utilities Expense 17,600 Depreciation expense 300 Bad debts expense 5,680 Total Operating Expenses 88,180 Operating Income 22,320 Interest Revenue 105 Net Income before taxes 22,425 Income tax expense 10,100 Net Income 12,325 Statement of Retained Earnings For Month ended Jan 31, 2021 Retained Earnings, Jan 1, 2018 65,400 12,325 Net Income Retained Earnings, Jan 31, 2018 77,725

Req 5 TNT Fireworks Balance Sheet As of Jan 31, 2021 Assets Current Assets Cash 3,200 Accounts Receivable 235,100 Allowance for Uncollectible Accounts (8,980) 226,120 Inventory 10,800 Accrued Interest Revenue 105 Total Current Assets 240,225 Property, Plant & Equipment Land 166,000 Equipment 20,600 (300) Accumulated Depreciation-Equipment Equipment, Net 20,300 Total Property, Plant & Equipment 186,300 Other Assets Notes Receivable (5%, due in 2 years) 25,200 Total Assets 451,725 Liabilities & Stockholders Equity Current Liabilities Accounts Payable 99,200 Salaries Payable 33,700 Income tax Payable 10,100 Total Current Liabilities 143,000 Stockholders Equity Common Stock 231,000 Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 77,725 308,725 451,725