Question

I can't quite figure this question out. How do you prepare the adjusted trail balance for...

I can't quite figure this question out. How do you prepare the adjusted trail balance for January 31, Year 1?

[The following information applies to the questions displayed below.]

On January 1, Year 1, the general ledger of a company includes the following account balances:

Accounts Debit Credit
Cash $ 24,300
Accounts Receivable 42,500
Allowance for Uncollectible Accounts $ 2,700
Inventory 42,000
Land 79,600
Accounts Payable 29,200
Notes Payable (8%, due in 3 years) 42,000
Common Stock 68,000
Retained Earnings 46,500
Totals $ 188,400 $ 188,400

The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January Year 1, the company had the following inventory transactions:

January 3 Purchase 1,050 units for $115,500 on account ($110 each).
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
January 12 Purchase 1,250 units for $150,000 on account ($120 each).
January 15 Return 160 of the units purchased on January 12 because of defects.
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22 Receive $529,000 from customers on accounts receivable.
January 24 Pay $359,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,100.
January 31 Pay cash for salaries during January, $110,000.

The following information is available on January 31, Year 1.

  1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
  2. The company estimates future uncollectible accounts. The company determines $5,200 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
  3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
  4. Accrued income taxes at the end of January are $13,500.

Exercise 6-21B Part 3

a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
d. Accrued income taxes at the end of January are $13,500.
  

3. Prepare an adjusted trial balance as of January 31, Year 1.
  

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7) [The following...
Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 24,100 Accounts Receivable 42,000 Allowance for Uncollectible Accounts $ 2,500 Inventory 41,000 Land 78,100 Accounts Payable 29,700 Notes Payable (12%, due in 3 years) 41,000 Common Stock 67,000 Retained Earnings 45,000 Totals $ 185,200 $ 185,200...
Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7) [The following...
Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 24,100 Accounts Receivable 42,000 Allowance for Uncollectible Accounts $ 2,500 Inventory 41,000 Land 78,100 Accounts Payable 29,700 Notes Payable (12%, due in 3 years) 41,000 Common Stock 67,000 Retained Earnings 45,000 Totals $ 185,200 $ 185,200...
Cash $ 60,300 Accounts Receivable 28,200 Allowance for Uncollectible Accounts $ 3,800 Inventory 37,900 Notes Receivable...
Cash $ 60,300 Accounts Receivable 28,200 Allowance for Uncollectible Accounts $ 3,800 Inventory 37,900 Notes Receivable (5%, due in 2 years) 31,200 Land 171,000 Accounts Payable 16,400 Common Stock 236,000 Retained Earnings 72,400 Totals $ 328,600 $ 328,600 During January 2021, the following transactions occur: January 1 Purchase equipment for $21,100. The company estimates a residual value of $3,100 and a five-year service life. January 4 Pay cash on accounts payable, $11,100. January 8 Purchase additional inventory on account, $98,900....
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:   ...
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:      Accounts Debit Credit   Cash $ 27,000   Accounts Receivable 50,000   Allowance for Uncollectible Accounts $ 6,100   Inventory 21,900   Land 65,000   Equipment 24,500   Accumulated Depreciation 3,400   Accounts Payable 30,400   Notes Payable (6%, due April 1, 2019) 69,000   Common Stock 54,000   Retained Earnings 25,500        Totals $ 188,400 $ 188,400 At the end of January, $30,000 of accounts receivable are past due, and the company estimates that 30%...
On January 1, 2020, the general ledger of Redbud Company includes the following account balances:   ...
On January 1, 2020, the general ledger of Redbud Company includes the following account balances:    Accounts Debit Credit Cash $ 25,100 Accounts Receivable 44,500 Inventory 46,000 Land 85,600 Allowance for Uncollectible Accounts 3,500 Accounts Payable 27,200 Notes Payable (9%, due in 3 years) 46,000 Common Stock 72,000 Retained Earnings 52,500 Totals $ 201,200 $ 201,200 The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2020, Redbud had the following inventory transactions:    January...
On January 1, Year 1, the general ledger of a company includes the following account balances:...
On January 1, Year 1, the general ledger of a company includes the following account balances:    Accounts Debit Credit Cash $ 59,300 Accounts Receivable 26,200 Allowance for Uncollectible Accounts $ 2,800 Inventory 36,900 Notes Receivable (5%, due in 2 years) 19,200 Land 161,000 Accounts Payable 15,400 Common Stock 226,000 Retained Earnings 58,400 Totals $ 302,600 $ 302,600    During January Year 1, the following transactions occur:    January 1 Purchase equipment for $20,100. The company estimates a residual value...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 27,100 Accounts Receivable 50,200 Allowance for Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000 Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable 30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock 55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300 During January 2021, the following transactions occur: January...
Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) Skip to...
Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) Skip to question [The following information applies to the questions displayed below.]    On January 1, Year 1, the general ledger of a company includes the following account balances:    Accounts Debit Credit Cash $ 59,100 Accounts Receivable 25,800 Allowance for Uncollectible Accounts $ 2,600 Inventory 36,700 Notes Receivable (5%, due in 2 years) 16,800 Land 159,000 Accounts Payable 15,200 Common Stock 224,000 Retained Earnings 55,600...
Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) 6. Record...
Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) 6. Record closing entries [The following information applies to the questions displayed below.]    On January 1, Year 1, the general ledger of a company includes the following account balances:    Accounts Debit Credit Cash $ 59,100 Accounts Receivable 25,800 Allowance for Uncollectible Accounts $ 2,600 Inventory 36,700 Notes Receivable (5%, due in 2 years) 16,800 Land 159,000 Accounts Payable 15,200 Common Stock 224,000 Retained Earnings...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts Debit Credit Cash $ 84,000 Accounts Receivable 53,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 44,000 Building 84,000 Accumulated Depreciation 24,000 Land 214,000 Accounts Payable 34,000 Notes Payable (8%, due in 3 years) 48,000 Common Stock 114,000 Retained Earnings 254,000 Totals $ 479,000 $ 479,000 The $44,000 beginning balance of inventory consists of 400 units, each costing $110. During January 2020, the following transactions...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT