1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 10) assuming a FIFO perpetual inventory system. 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 11 to 14). 3. Review the adjusted 'Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16). 7. Using the information from the requirements above, complete the 'Analysis' tab. Unadjusted General Ledger Account Cash Accounts Receivable Debit Credit No. Debit Credit No. Date Date January 01 Balance 23,300 Balance 40,000 Allowance for Uncollectible Accounts Date Debit Credit Inventory Debit No. No. Credit Balance 4,500 Date January 01 Balance 37,000 Land Accounts Payable Debit Credit No. Debit Credit No. Date Date January 01 Balance 72,100 Balance 28,900 Notes Payable Debit Credit Common Stock Debit Credit No. Date No. Date Balance 37,000 Balance 63,000 Retained Earnings Debit Credit No. Date Balance 39,000 Unadjusted General Ledger Account Cash Accounts Receivable Debit Credit No. Debit Credit No. Date Date January 01 Balance 23,300 Balance 40,000 Allowance for Uncollectible Accounts Date Debit Credit Inventory Debit No. No. Credit Balance 4,500 Date January 01 Balance 37,000 Land Accounts Payable Debit Credit No. Debit Credit No. Date Date January 01 Balance 72,100 Balance 28,900 Notes Payable Debit Credit Common Stock Debit Credit No. Date No. Date Balance 37,000 Balance 63,000 Retained Earnings Debit Credit No. Date Balance 39,000 On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Credit Debit $23,300 40,000 $4,500 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (6%, due in 3 years) Common Stock Retained Earnings Totals 37,000 72,100 28,900 37,000 63,000 39,000 $172,400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,600 units for $168,000 on account ($105 each). January 8 Purchase 1,700 units for $187,000 on account ($110 each). January 12 Purchase 1,800 units for $207,000 on account ($115 each). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $780,000 The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $753,000 from customers on accounts receivable. January 24 Pay $520,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,200. January 31 Pay cash for salaries during January, $121,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,300. for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,000
