On January 1, 2021, the general ledger of Tripley Company included the following account balances:AccountsDebit Credit Cash$94,000 Accounts receivable 44,000 Allowance for uncollectible accounts $9,400 Inventory 30,400 Building 90,400 Accumulated depreciation 14,000 Land 208,000 Accounts payable 40,000 Notes payable (8%, due in 3 years) 60,000 Common stock 104,000 Retained earnings 239,400 Totals$466,800 $466,800The $30,400 beginning balance of inventory consists of 304 units, each costing $100. During January 2021, the company had the following transactions:January 2 Lent $24,000 to an employee by accepting a 6% note due in six months. 5 Purchased 3,700 units of inventory on account for $407,000 ($110 each) with terms 1/10, n/30. 8 Returned 100 defective units of inventory purchased on January 5. 15 Sold 3,500 units of inventory on account for $469,000 ($134 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 $36,400 from 2020 plus amount receivable on sale of 2,900 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 3,300 units on January 5. 28 Paid cash for salaries during January, $32,000. 29 Paid cash for utilities during January, $14,000. 30 Paid dividends, $3,400.Month-end adjusting entries:Of the remaining accounts receivable, the company estimates that 10% will not be collected.Accrued interest revenue on notes receivable for January.Accrued interest expense on notes payable for January.Accrued income taxes at the end of January for $5,400.Depreciation on the building, $2,400.1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-13) assuming a perpetual FIFO inventory system. Purchases and sales of inventory are recorded using the gross method for cash discounts. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 14-18).3. Review the adjusted 'Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab.4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab.5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab.6. Record closing entries in the 'General Journal' tab (these are shown as items 19-20).7. Using the information from the requirements above, complete the 'Analysis' tab.

Under perpetual FIFO system, 2 entries are passed on making sales. (1. Debtors Dr. To Sales 2.…

Answered: 1. Record each of the transactions…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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On January 1, 2021, the general ledger of Tripley Company included the following account balances:

Accounts	Debit		Credit
Cash	$	94,000
Accounts receivable		44,000
Allowance for uncollectible accounts				$	9,400
Inventory		30,400
Building		90,400
Accumulated depreciation					14,000
Land		208,000
Accounts payable					40,000
Notes payable (8%, due in 3 years)					60,000
Common stock					104,000
Retained earnings					239,400
Totals	$	466,800		$	466,800

The $30,400 beginning balance of inventory consists of 304 units, each costing $100. During January 2021, the company had the following transactions:

January	2	Lent $24,000 to an employee by accepting a 6% note due in six months.
	5	Purchased 3,700 units of inventory on account for $407,000 ($110 each) with terms 1/10, n/30.
	8	Returned 100 defective units of inventory purchased on January 5.
	15	Sold 3,500 units of inventory on account for $469,000 ($134 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 $36,400 from 2020 plus amount receivable on sale of 2,900 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 3,300 units on January 5.
	28	Paid cash for salaries during January, $32,000.
	29	Paid cash for utilities during January, $14,000.
	30	Paid dividends, $3,400.

Month-end adjusting entries:

Of the remaining accounts receivable, the company estimates that 10% will not be collected.
Accrued interest revenue on notes receivable for January.
Accrued interest expense on notes payable for January.
Accrued income taxes at the end of January for $5,400.
Depreciation on the building, $2,400.

1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-13) assuming a perpetual FIFO inventory system. Purchases and sales of inventory are recorded using the gross method for cash discounts. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 14-18).

3. Review the adjusted 'Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab.

4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab.

5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab.

6. Record closing entries in the 'General Journal' tab (these are shown as items 19-20).

7. Using the information from the requirements above, complete the 'Analysis' tab.

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