Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During January 2024, the following transactions occur: January 2 Sold gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the
During January 2024, the following transactions occur: January 2 Sold gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $158,000. ACME uses the perpetual inventory system. January 15 Firework sales for the first half of the month total $146,000. All of these sates are on account. The cost of the units sold is $79,300. January 23 Receive $126,500 from customers on accounts receivable. January 25 Pay $101,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,990. January 30 Firework sales for the second hatf of the month total $154,000. Sales include $17,000 for cash and $137,000 on account. The cost of the units sold is $85,000. January 31 Pay cash for monthly salaries, $53,100. The following information is available on January 31. a. 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 $4,300 and a two-year service life. b. The company records an adjusting entry for $12,510 for estimated future uncollectible accounts. c. The company has accrued interest on notes payable for January. d. The company has accrued income taxes at the end of January of $14,100 e. By the end of January, $4,100 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). Journal entry worksheet 16789 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 $4,300 and a two-year service life. Record the adjusting entry for depreciation. Note: Enter debits before credits. Journal entry worksheet 1 8 9 17 The company records an adjusting entry for $12,510 for estimated future uncollectible accounts. Note: Enter debits before credits. Journal entry worksheet \begin{tabular}{lllll|l|} \hline & 1 & & 8 & 10 & 11 \end{tabular} The company has accrued interest on notes payable for January. Note: Enter debits before credits. Journal entry worksheet 19101112 17 The company has accrued income taxes at the end of January of $14,100 Note: Enter debits before credits. Journal entry worksheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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