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Homework i nces W On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance
Homework i nces W On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock Retained Earnings Totals Debit $23,100 39,500 36,000 70,600 Requirement $169,200 General Journal Credit General Ledger View transaction list $4,300 January 3 Purchase 1,500 units for $156,000 on account ($104 each). January 8 Purchase 1,600 units for $174,400 on account ($109 each). January 12 Purchase 1,700 units for $193,800 on account ($114 each). January 15 Return 130 of the units purchased on January 12 because of defects. 29,400 36,000 62,000 The $36,000 beginning balance of inventory consists of 360 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 22 Receive $709,000 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,100. January 31 Pay cash for salaries during January, $120,000. The following information is available on January 31, 2024. $169,200 January 19 Sell 4,900 units on account for $735,000 The cost of the units sold is determined using a FIFO perpetual inventory system. mis on account for Trial Balance 37,500 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 $3,070. 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 $12,900. E Income Statement Saved Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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