On January 1, 2024, the general ledger of a company includes the following account balances:
During January 2024, the following transactions occur:
Information for adjusting entries:
a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
b. The company records an adjusting entry for $5,660 for estimated future uncollectible accounts.
c. The company has accrued interest on notes receivable for January.
d. Unpaid salaries owed to employees at the end of January are $33,800.
e. The company accrued income taxes at the end of January $10,200.
Required:
Record each of the transactions listed above.
Record the adiustinc entries on .Januarv 31 for the above transactions.
On January 1,2024,the general ledger of a company includes the following account balances
Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals
Debit $59,900 27,400
Credit
$3,400
37,500 26,400 167,000
16,000 232,000 66,800 $318,200
$318,200
During January 2024,the following transactions occur:
January 1 Purchase equipment for $20,700. The company estimates a residual value of $2,700 and a six-year service life. January 4 Pay cash on accounts payable, $10,700. January 8 Purchase additional inventory on account, $94,900. January 15 Receive cash on accounts receivable, $23,200. January 19 Pay cash for salaries, $31,000. January 28 Pay cash for January utilities, $17,700. January 30 Sales for January total $232,000. All of these sales are on account. The cost of the units sold is $121,000.
Information for adjusting entries:
a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company records an adjusting entry for $5,660 for estimated future uncollectible accounts. c.The company has accrued interest on notes receivable for January.
e.The company accrued income taxes at the end of January $10,200
Required: 1. Record each of the transactions listed above. 2.Record the adiustina entries on Januarv 31 for the ahove transactions.