Question
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
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