Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,100 Accounts Receivable 46,200 Allowance

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:

Accounts Debit Credit
Cash $ 25,100
Accounts Receivable 46,200
Allowance for Uncollectible Accounts $ 4,200
Inventory 20,000
Land 46,000
Equipment 15,000
Accumulated Depreciation 1,500
Accounts Payable 28,500
Notes Payable (6%, due April 1, 2019) 50,000
Common Stock 35,000
Retained Earnings 33,100
Totals $ 152,300 $ 152,300

During January 2018, the following transactions occur: January 2. 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. 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.

2.record adjusting entries

3. Prepare an adjusted trial balance as of January 31, 2018. (if you could explain how you got figures that would be 10./10)

4. Prepare a multiple-step income statement for the period ended January 31, 2018.

5. Prepare a classified balance sheet as of January 31, 2018. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.)

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

Step: 3

blur-text-image

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

The Why And How Of Auditing Auditing Made Easy

Authors: Charles B. Hall

1st Edition

0578519739, 978-0578519739

More Books

Students also viewed these Accounting questions

Question

a. S96 b. S98 c. SLOO

Answered: 1 week ago

Question

How does your language affect the way you think?

Answered: 1 week ago