Homework Help is Here – Start Your Trial Now!
Business
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 Conmon Stock Retained Earnings Debit $ 12, 200 36,000 153,000 77, 300 130,000 Credit $2,800 10, 600 28, 700 210,000 156, 400 $408, 500 Totals $408,500 During January 2021, the following transactions occur: Borrow $110,000 from Captive Credit Corporation. The installment note bears interest at 6x annually and matures in 5 years. Payments of $2,127 are required at the end of each month for 60 months. January January Receive $32,000 fron customers on accounts receivable. Pay cash on accounts payable, $21,000. January 10 January Pay cash for salaries, $29,900. 15 Firework sales for the month total $200, 600. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117, 500. Pay the first monthly instal Inent of $2,127 related to the $110,000 borrowed on January 1. Round your interest caiculation to the nearest dollar January 30 January 31

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 Conmon Stock Retained Earnings Debit $ 12, 200 36,000 153,000 77, 300 130,000 Credit $2,800 10, 600 28, 700 210,000 156, 400 $408, 500 Totals $408,500 During January 2021, the following transactions occur: Borrow $110,000 from Captive Credit Corporation. The installment note bears interest at 6x annually and matures in 5 years. Payments of $2,127 are required at the end of each month for 60 months. January January Receive $32,000 fron customers on accounts receivable. Pay cash on accounts payable, $21,000. January 10 January Pay cash for salaries, $29,900. 15 Firework sales for the month total $200, 600. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117, 500. Pay the first monthly instal Inent of $2,127 related to the $110,000 borrowed on January 1. Round your interest caiculation to the nearest dollar January 30 January 31

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...
See similar textbooks
icon
Related questions
Question
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 Debit Credit $ 12,200 36,000 153,000 77, 300 130,000 Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock $ 2,800 10,600 28,700 210,000 156,400 $408, 500 Retained Earnings Totals $408, 500 During January 2021, the following transactions occur: Borrow $110,000 from Captive Credit Corporation. The installment note beaes interest at 6x annually and matures in 5 years. Payments of $2,127 are required at the end of each month for 60 months. Receive $32, 000 from customers on accounts receivable, January January January Pay cash on accounts payable, $21,000. 10 Pay cash for salaries, $29,900. January 15 Firework sales for the month total $200,60o. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117,500. Pay the first monthly installnent of $2,127 related to the $110,000 borrowed on January 1. Round your interest calculation to the nearest dollar January 30 January 31
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 Debit Credit $ 12,200 36,000 153,000 77, 300 130,000 Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock $ 2,800 10,600 28,700 210,000 156,400 $408, 500 Retained Earnings Totals $408, 500 During January 2021, the following transactions occur: Borrow $110,000 from Captive Credit Corporation. The installment note beaes interest at 6x annually and matures in 5 years. Payments of $2,127 are required at the end of each month for 60 months. Receive $32, 000 from customers on accounts receivable, January January January Pay cash on accounts payable, $21,000. 10 Pay cash for salaries, $29,900. January 15 Firework sales for the month total $200,60o. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117,500. Pay the first monthly installnent of $2,127 related to the $110,000 borrowed on January 1. Round your interest calculation to the nearest dollar January 30 January 31
Exercise 9-21 Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2021. Freedom Fireworks Multiple-Step Income Statement For the month ended January 31, 2021 Gross Profit Expenses: Total Operating Expenses
Transcribed Image Text:Exercise 9-21 Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2021. Freedom Fireworks Multiple-Step Income Statement For the month ended January 31, 2021 Gross Profit Expenses: Total Operating Expenses
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Current liabilities, Provisions and Contingencies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS