accounting homework

LIIVITY WITHILUTILISE WICYCLVIS SUCU VEI VEJ On January 1, 2021, the general ledger of Big Blast Fireworks Includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (63, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 22,700 38,500 $ 3,900 24,000 67,600 30,400 34,000 60,000 24,500 $162,800 $162,800 The $34.000 beginning balance of Inventory consists of 340 units, each costing $100. During January 2021, Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 1, 200 units for $141,700 on account ($109 each). January 8 Purchase 1,400 units for $159, 600 on account ($114 each). January 12 Purchase 1,500 units for $178,500 on account ($119 each). Return January 19 Bell 4,300 units on account for $645,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Beceive $621,000 from customers on accounts receivable. January 24 Pay $451,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $118,000. The following Information is available on January 31, 2021. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts receivable on January 31 are past due, and 35% 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.) 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 $12.700. Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual Inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record purchase of 1,300 units for $141,700 on account ($109 each). Note: Enter debts before credits Date General Journal Debit Credit January 03 Required information Fireworks had the following Inventory transactions: January 3 Purchase 1, 300 units for $141,700 on account ($109 each) January 8 Purchase 1,400 units for $159, 600 on account ($114 each). January 12 Purchase 1,500 units for $178,500 on account ($119 each). January 15 Return 120 of the units purchased on January 12 because of defects. January 19 Bell 4,300 units on account for $645,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $621,000 from customers on accounts receivable. January 24 Pay $451,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $118,000. The following Information is available on January 31, 2021. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts recelvable on January 31 are past due, and 35% 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.) 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 $12.700. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts receivable on January 31 are past due, and 35% 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 recelvable balance calculated in the general ledger.) 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 $12.700. 2 Record adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. Record the adjustment for net realizable value. Note: Enter debits before credits General Journal Debit Credit Date January 31 Record entry Clear entry View general joumal Required information Fireworks had the following Inventory transactions: January 3 Purchase 1,300 units for $141,700 on account ($109 each). January 8 Purchase 1,400 units for $159, 600 on account ($114 each). January 12 Purchase 1,500 units for $178,500 on account ($119 each). January 15 Beturn 120 of the units purchased on January 12 because of defects. January 19 Bell 4, 200 units on account for $645,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Beceive $621,000 from customers on accounts receivable. January 24 Pay $451,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $118,000. The following Information is available on January 31, 2021. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts recelvable on January 31 are past due, and 35% 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 recevable balance calculated in the general ledger.) 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 $12,700. 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 $4.400 of accounts receivable are past due, and the company estimates that 35% 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 $12,700. 3. Prepare an adjusted trial balance as of January 31, 2021. BIG BLAST FIREWORKS Adjusted Trial Balance January 31, 2021 Debit Accounts Credit Totals Accounts Payable Notes Payable (63, due in 3 years) Common Stock Retained Earnings Totals 30,400 24,000 60,000 24,500 $162,800 $162,800 The $34.000 beginning balance of Inventory consists of 340 units, each costing $100. During January 2021, Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 1,300 units for $141,700 on account ($109 each) January 8 Purchase 1,400 units for $159, 600 on account ($114 each). January 12 Purchase 1,500 units for $178,500 on account ($119 each). January 15 Beturn 120 of the units purchased on January 12 because of defects. January 19 Sell 4,300 units on account for $645,000. The cost of the units sold is determined using a PIPO perpetual inventory system. January 22 Receive $621,000 from customers on accounts receivable. January 24 Pay $451,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $118,000. The following Information is available on January 31, 2021. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts receivable on January 31 are past due, and 35% 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 recelvable balance calculated in the general ledger.) 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 $12.700. 5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) BIG BLAST FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities 0 0 Total current assets Total current liabilities 0 0 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 0 0 Total assets $ 0 $ nework Inventory Land Accounts Payable Notes Payable (63, due in 3 years) Common Stock Retained Earnings Totals 24,000 67,600 30, 400 34,000 60,000 34,500 $162,800 $162,800 The $34.000 beginning balance of Inventory consists of 340 units, each costing $100. During January 2021, Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 1,300 units for $141,700 on account ($109 each). January 8 Purchase 1,400 units for $159, 600 on account ($114 each). January 12 Purchase 1,500 units for $178,500 on account ($119 each). January 15 Return 120 of the units purchased on January 12 because of defects. January 19 Bell 4,300 units on account for $645,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $621,000 from customers on accounts receivable. January 24 Pay $451,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $118,000. The following Information is available on January 31, 2021. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts recelvable on January 31 are past due, and 35% 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.) 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 $12700. 6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the closing entry for revenue accounts. Note: Enter debts before credits General Journal Debit Credit Date January 31, 2021 Record entry Clear entry View general joumal mework ELV I DVULL LOUW w ws Uudu wa ULL LA VELLUS UL WELCLUS. Required information January 24 Pay $451,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,900. January 31 Pay cash for salaries during January, $118,000. The following Information is available on January 31, 2021. 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. The company estimates future uncollectible accounts. The company determines $4.400 of accounts receivable on January 31 are past due, and 35% 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.) 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 $12.700. 7. Analyze how well Big Blast Fireworks' manages Its Inventory a-1. Calculate the inventory turnover ratio for the month of January. (Round your final answer to 1 decimal place) The Inventory turnover ratio is a-2 If the Industry average of the Inventory tumover ratio for the month of January is 19.2 times, is the company managing its Inventory more or less efficiently than other companies in the same Industry? More Less b-1. Calculate the gross profit ratio for the month of January. (Round your final answer to 1 decimal place) The Gross Profit Ratio is b-2 If the Industry average gross profit ratio is 30.0%, Is the company more or less profitable per dollar of sales than other companies In the same Industry? More Less C. Is the company's strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive Items? Higher volume of less expensive Lower volume of more expensive