Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

my answers are incorrect i need to find correct numbers On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account

my answers are incorrect i need to find correct numbers On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances:

Accounts Debit Credit
Cash $24,100
Accounts Receivable 42,000
Allowance for Uncollectible Accounts $2,500
Inventory 41,000
Land 78,100
Accounts Payable 29,700
Notes Payable (12%, due in 3 years) 41,000
Common Stock 67,000
Retained Earnings 45,000
Totals $185,200 $185,200

The $41,000 beginning balance of inventory consists of 410 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions:

January 3 Purchase 2,000 units for $218,000 on account ($109 each).
January 8 Purchase 2,100 units for $239,400 on account ($114 each).
January 12 Purchase 2,200 units for $261,800 on account ($119 each).
January 15 Return 155 of the units purchased on January 12 because of defects.
January 19 Sell 6,400 units on account for $960,000 The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22 Receive $950,000 from customers on accounts receivable.
January 24 Pay $680,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,000.
January 31 Pay cash for salaries during January, $125,000.

The following information is available on January 31, 2024.

  1. 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.]
  2. The company records an adjusting entry for $3,785. for estimated future uncollectible accounts.
  3. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.
  4. The company accrues income taxes at the end of January of $13,400.

image text in transcribed image text in transcribed

Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" n the first account field.) Journal entry worksheet At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. Record the adjusting entry for inventory. Note: Enter debits before credits. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" n the first account field.) Journal entry worksheet 1234 7) 8 (16 > Record the cost of the units sold, which is determined using a FIFO perpetual inventory system. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

14th Global Edition

978-0273753872, 0273753878

More Books

Students also viewed these Accounting questions

Question

Am I able to get the appropriate change leaders on-board?

Answered: 1 week ago