Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me with the rest of the table, I keep getting it wrong :( Exercise 621 Complete the accounting cycle using inventory transoctions

Can someone help me with the rest of the table, I keep getting it wrong :(
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 621 Complete the accounting cycle using inventory transoctions ( LO6-2, 6-3, 6-5, 6-6, 6-7) [The following information applies to the questions displayed below] On January 1,2021, the general ledger of Big Blast Fireworks includes the following account balances: The $30,000 beginning balance of inventory consists of 300 units, each costing $100, During lanuary 2021. Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,209 units for $126,090 on account (\$105 each), January 8 Purchase 1,300 units for $143,000 on account ( $118 each). 3anuary 12 Purchase 1,400 units for $161,090 on account ($115 each). January 15 Return 100 of the units purchased on January 12 because of defects. Jonuary 19 sell 4,000 units on account for $600,000. The cost of the units sold is determined using a fifo perpetua inventory system. 3 anuany 22 Receive $580,000 from customers on accounts receivable, January 24 Pay $410,000 to inventory suppliers on accounts payable. January 27 Write off accounts neceivable as uncollectible, $2,509. January 31 Pay cash for salaries during January, $128,009. 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 $4,000 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% 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 $12,300. 5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minu

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Debunked An Auditor Reviews The 2020 Election And The Lessons Learned

Authors: Joseph Fried

1st Edition

1645720756, 978-1645720751

More Books

Students also viewed these Accounting questions