Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Find the retained earnings for this question please. On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: $
Find the retained earnings for this question please.
On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: $ 21,900 36,500 $ 3,100 30,000 61,600 32,400 30,000 56,000 28,500 Accounts Cash Accounts Receivable Allowance for Uncollectible Invento ry Land Accounts Payable Notes Payable (8%, due in 3 Common Stock Retained Earnings Totals Accounts years) Debit $ 150,000 Credit $ 150,000 The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January January January January January January January January January 3 8 12 15 19 22 24 27 31 Purchase 1,20 units for $126, on account ($105 each). Purchase 1,300 units for $143, on account ($110 each) . Purchase 1,400 units for $161, 000 on account ($115 each). Return 100 of the units purchased on January 12 because of defects. Sell 4,000 units on account for $600,000. The cost of the units sold is determined using a FIFO perpetual inventory system. Receive $580, from customers on accounts receivable. Pay $410,000 to inventory suppliers on accounts payable. Write off accounts receivable as uncollectible, $2,500. Pay cash for salaries during January, $128,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,000 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,300.
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