Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 13,000 Accounts Receivable 37,600 Inventory 153,800 Land 85,300 Buildings 138,000 Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $427,700 $ 3,600 11,400 37,500 218,000 157, 200 $427,700 During January 2021, the following transactions occur: January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures 1 in 5 years. Payments of $2,281 are required at the end of each month for 60 months. January Receive $32,800 from customers on accounts receivable. 4 January Pay cash on accounts payable, $29,000. 10 January Pay cash for salaries, $30,700. 15 January Firework sales for the month total $210,600. Sales include $66,800 for cash and $143,800 on account. The cost 30 of the units sold is $121,500. January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest 31 calculation to the nearest dollar.
Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 13,000 Accounts Receivable 37,600 Inventory 153,800 Land 85,300 Buildings 138,000 Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $427,700 $ 3,600 11,400 37,500 218,000 157, 200 $427,700 During January 2021, the following transactions occur: January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures 1 in 5 years. Payments of $2,281 are required at the end of each month for 60 months. January Receive $32,800 from customers on accounts receivable. 4 January Pay cash on accounts payable, $29,000. 10 January Pay cash for salaries, $30,700. 15 January Firework sales for the month total $210,600. Sales include $66,800 for cash and $143,800 on account. The cost 30 of the units sold is $121,500. January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest 31 calculation to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Owe.
Sub: accounting
![Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.]
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Inventory
Land
Buildings
Allowance for Uncollectible Accounts
Accumulated Depreciation
Accounts Payable
Common Stock
Retained Earnings
Totals
Debit
$ 13,000
37,600
153,800
85,300
138,000
$427,700
Credit
$ 3,600
11,400
37,500
218,000
157, 200
$427,700
During January 2021, the following transactions occur:
January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6 % annually and matures
in 5 years. Payments of $2,281 are required at the end of each month for 60 months.
1
January Receive $32,800 from customers on accounts receivable.
4
January Pay cash on accounts payable, $29,000.
10
January Pay cash for salaries, $30,700.
15
January Firework sales for the month total $210,600. Sales include $66,800 for cash and $143,800 on account. The cost
30
of the units sold is $121,500.
January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest
31
calculation to the nearest dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F1571671f-539b-4e32-89c2-0b2baf0972c5%2F5l6v4w7_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.]
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Inventory
Land
Buildings
Allowance for Uncollectible Accounts
Accumulated Depreciation
Accounts Payable
Common Stock
Retained Earnings
Totals
Debit
$ 13,000
37,600
153,800
85,300
138,000
$427,700
Credit
$ 3,600
11,400
37,500
218,000
157, 200
$427,700
During January 2021, the following transactions occur:
January Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6 % annually and matures
in 5 years. Payments of $2,281 are required at the end of each month for 60 months.
1
January Receive $32,800 from customers on accounts receivable.
4
January Pay cash on accounts payable, $29,000.
10
January Pay cash for salaries, $30,700.
15
January Firework sales for the month total $210,600. Sales include $66,800 for cash and $143,800 on account. The cost
30
of the units sold is $121,500.
January Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Round your interest
31
calculation to the nearest dollar.
Transcribed Image Text:3. Prepare an adjusted trial balance as of January 31, 2021.
Freedom Fireworks
Adjusted Trial Balance
January 31, 2021
Accounts
Debit
Credit
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