Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please answer all the questions and provide the general journal entry, Thanks! On January 1, 2021, the general ledger of Big Blast Fireworks
Can you please answer all the questions and provide the general journal entry, Thanks!
On January 1, 2021, the general ledger of Big Blast Fireworks included the following account balances: Accounts Cash Accounts receivable Allowance for uncollectible accounts Inventory Land Accounts payable Notes payable (86, due in 3 years) Common stock Retained earnings Totals Debit Credit $ 25,500 45,500 3,900 48,000 88,600 26, 200 48,000 74,000 55,500 $207,600 $207,600 The $48,000 beginning balance of inventory consists of 480 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchased 1,650 units for $183,150 on account ($111 each). January 8 Purchased 1,750 units for $203,000 on account ($116 each). January 12 Purchased 1,850 units for $223,850 on account ($121 each). January 15 Returned 190 of the units purchased on January 12 because of defects. January 19 Sold 5,400 units on account for $810,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Received $793,000 from customers on accounts receivable. January 24 Paid $580,000 to inventory suppliers on accounts payable. January 27 Wrote off accounts receivable as uncollectible, $2,700. January 31 Paid cash for salaries during January, $137,000. 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. At the end of January, $5,800 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 4% 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 $14,100. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Adjusted Big Blast Fireworks Multiple-Step Income Statement For the year ended January 31, 2021 Gross profit Total operating expenses Operating income Income before taxes Trial Balance Balance Sheet > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Adjusted Big Blast Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Cash Inventory Current Liabilities: 101,500 Accounts payable 14,000 Notes payable 59,800 Interest payable 33,210 48,000 320 Accounts receivable Total Current Liabilities 81,530 175,300 Total Liabilities 81,530 Total Current Assets Noncurrent Assets: Stockholders' Equity Retained earnings 55,500 74,000 Common stock Total Stockholders' Equity 175,300 Total Liabilities & Stockholders' Equity 129,500 211,030 Total Assets $ $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started