Exercise 8-19 (page 430 of the textbook) On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances: Beginning Trial Balance (has already been entered into the General Ledger beginning balances). Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2025) Common Stock Retained Earnings Totals The following activity occured during the month of January: January 28 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $147,000. ACME uses the perpetual inventory system. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $132,000 on account. The cost of the units sold is $79,500. January 31 Pay cash for monthly salaries, $52,000. Required 1 Record each of the transactions listed in the general journal and post to the general ledger. 2 Record adjusting entries on January 31 in the general journal and post to the general ledger. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment a. was purchased, the company estimated a residual value of $3,000 and a two-year service life. b. The company records an adjusting entry for $12,500 for estimated future uncollectible accounts. c. The company has accrued interest on notes payable for January. d. The company accrued income taxes at the end of January of $13,000. e. By the end of January, $3,000 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). Debit Credit $25,100 46,200 $4,200 20,000 46,000 15,000! 1,500 28,500 50,000 35,000 33,100 $152,300 $152,300 ACCOUNT: Cash DATE GENERAL LEDGER ACCOUNT NO: 101 POST BALANCE ITEM REF. DEBIT CREDIT DEBIT CREDIT 2024 Jan 1 Balance 25,100.00 General Journal General Journal 8,000.00 125,400.00 33,100.00 158,500.00 90,000.00 68,500.00 11,000.00 52,000.00 79,500.00 131,500.00 ACCOUNT: Accounts Receivable ACCOUNT NO: 111 POST BALANCE DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT 2024 Jan 1 Balance 46,200.00 General Journal 135,000.00 181,200.00 125,400.00 55,800.00 132,000.00 52,000.00 187,800.00 135,800.00 ACCOUNT: Allowance for Uncollectible Accounts DATE 2024 Jan 1 Balance Allowance ACCOUNT NO: 115 POST BALANCE ITEM REF. DEBIT CREDIT DEBIT CREDIT 48,000.00 12,500.00 4,200.00 52,200.00 39,700.00 ACCOUNT: Inventory DATE ACCOUNT NO: 121 POST BALANCE ITEM REF. DEBIT CREDIT DEBIT CREDIT 2024 Jan 1 General Journal General Journal ACCOUNT: Land DATE 2024 Jan 1 Balance ACCOUNT: Equipment DATE 2024 Jan 1 Balance 20,000.00 147,000.00 (127,000.00) 73,800.00 (200,800.00) ACCOUNT NO: 141 POST BALANCE ITEM REF. DEBIT CREDIT DEBIT CREDIT 15,000.00 46,000.00 ACCOUNT NO: 151 POST BALANCE ITEM REF. DEBIT CREDIT DEBIT CREDIT 15,000.00 15,000.00 ACCOUNT: Accumulated Depreciation, Equipment ACCOUNT NO: 155 POST BALANCE DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT 2024 Jan 1 Balance adjusted Journal 500.00 1,500.00 1,000.00 ACCOUNT: Accounts Payable ACCOUNT NO: 201 POST BALANCE DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT 2021 Beginning balance January 1, 2024 Issuance of common stock Add: Net income (or Less: Net loss) Less: Dividends Ending balance January 31, 2024 ACME Fireworks Statement of Stockholders' Equity For the month ended January 31, 2024 Total Common Stock Earnings Retained Stockholders' Equity DATE 1 CLOSING GENERAL JOURNAL 8 1 2456700 90 23456700 8 9 DESCRIPTION 2 4 235 Page: 24 POST. REF. DEBIT CREDIT