*5 PARTS*

Required information Exercise 8-18 Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6) {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 $ 25,800 Accounts Receivable 47,600 Allowance for Uncollectible Accounts $ 4,900 Inventory 20,700 Land 53,000 Equipment 18,500 Accumulated Depreciation 2,200 Accounts Payable 29,200 Notes Payable (6%, due April 1, 2022) 57,000 Common Stock 42,000 Retained Earnings 30,300 Totals $165,600 $165,600 During January 2021, the following transactions occur. January 2 Sold gift cards totaling $9,400. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $154,000. January 15 Firework sales for the first half of the month total $142,000. All of these sales are on account. The cost of the units sold is $77,300. January 23 Receive $126, 100 from customers on accounts receivable. January 25 Pay $97,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,500. January 30 Firework sales for the second half of the month total $150,000. Sales include $15,000 for cash and $135,000 on account. The cost of the units sold is $83,000. January 31 Pay cash for monthly salaries, $52,700. Exercise 8-18 Part 1 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 5 6 7 8 9 10 > Record sale of gift cards totaling $9,400. The cards are redeemable for merchandise within one year of the purchase date. Note: Enter debits before credits Date General Journal Debit Credit January 02 Exercise 8-18 Part 2 Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,700 and a two-year service life. . The company estimates future uncollectible accounts. The company determines $18,000 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) Accrued interest expense on notes payable for January Accrued income taxes at the end of January are $13,700. By the end of January, $3,700 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required"In the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 1 4 5 > Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $4,700 and a two-year service life. Record the depreciation for the month of January Note: tatar debits before credits General Journal Debit Date January 31 Credit Exercise 8-18 Part 3 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Debit Credit 4. Prepare a multiple-step income statement for the period ended January 31, 2021. ACME FIREWORKS Income Statement For the year ended January 31, 2021 $ 0 Total operating expenses 0 0 0 5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) ACME FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities Less: Allowance for Uncollectible Accounts 0 Total Current Assets 0 Total Current Liabilities 0 0 Total Liabilities Stockholders' Equity 0 Total Liabilities Stockholders' Equity 0 Total Assets Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ $ 0