On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances Debit Credit Accounts Cash Accounts Receivable Inventory Land Allowance for Uncollectible Accounts Accounts Payable Notes Payable (9%, due in 3 years) Common Stock Retained Earnings $ 24,700 43,500 44,000 82,600 3,100 28,200 44,000 70,000 49,500 $194,800 $194,800 Totals The $44,000 beginning balance of inventory consists of 440 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions January 3 Purchase 1,250 units for $133,750 on account ($107 each) January 8 Purchase 1,350 units for $151,200 on account ($112 each) January 12 Purchase 1,450 units for $169,650 on account ($117 each) January 15 Return 170 of the units purchased on January 12 because of defects January 19 Sel1 4,200 units on account for $630,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $617,000 from customers on accounts receivable. January 24 Pay $420,000 to inventory suppliers on accounts payable January 27 Write off accounts receivable as uncollectible, $2,300 January 31 Pay cash for salaries during January, $133,000 The following information is available on January 31, 2018 a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. At the end of January, $5,400 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $13,700 a. Of the remaining accounts receivable, the company estimates that 10% will not be collected b. Accrued interest income on notes receivable for January. c. Accrued interest expense on notes payable for January d. Accrued income taxes at the end of January for $6,500 e. Depreciation on the building, $3,500 nera Trial Ledger Income Balance She General Journal Trial BalanceStatement Requirement etAnalysis Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 13) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 14-18) Record the closing entries in the 'General Journal' tab (these are shown as items 19 and 20). (The company prepares closing entries by closing the appropriate accounts directly to Retained Earnings. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet 123 4 5 6 78 20 Lent $35,000 to an employee by accepting 6% note due in six months Note: Enter debits before credits General Journal General Ledger Income Trial Balance Requirement StatementBalance Sheet Analysis Prepare a multiple-step income statement for the period ended January 31, 2018. (Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance.) Unadjusted Big Blast Fireworks Multiple-Step Income Statement For the year ended January 31, 2018 Gross profit Total operating expenses Operating income Income before taxes Trial Balance Balance Sheet> Income Balance Sheet Analysis General Journal General Ledger Trial Balance Statement Requirement Prepare a classified balance sheet as of January 31, 2018. (Make sure to select 'Post-closing' from the dropdown, which will then populate the balances in those accounts from the post-closing trial balance.) Unadjusted Big Blast Fireworks Classified Balance Sheet January 31, 2018 Assets Liabilities Current Assets: Current Liabilities Total Current Liabilities Total Current Assets 0 Total Liabilities Noncurrent Assets: Stockholders' Equity Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity Total Assets On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances Debit Credit Accounts Cash Accounts Receivable Inventory Land Allowance for Uncollectible Accounts Accounts Payable Notes Payable (9%, due in 3 years) Common Stock Retained Earnings $ 24,700 43,500 44,000 82,600 3,100 28,200 44,000 70,000 49,500 $194,800 $194,800 Totals The $44,000 beginning balance of inventory consists of 440 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions January 3 Purchase 1,250 units for $133,750 on account ($107 each) January 8 Purchase 1,350 units for $151,200 on account ($112 each) January 12 Purchase 1,450 units for $169,650 on account ($117 each) January 15 Return 170 of the units purchased on January 12 because of defects January 19 Sel1 4,200 units on account for $630,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $617,000 from customers on accounts receivable. January 24 Pay $420,000 to inventory suppliers on accounts payable January 27 Write off accounts receivable as uncollectible, $2,300 January 31 Pay cash for salaries during January, $133,000 The following information is available on January 31, 2018 a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. At the end of January, $5,400 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $13,700 a. Of the remaining accounts receivable, the company estimates that 10% will not be collected b. Accrued interest income on notes receivable for January. c. Accrued interest expense on notes payable for January d. Accrued income taxes at the end of January for $6,500 e. Depreciation on the building, $3,500 nera Trial Ledger Income Balance She General Journal Trial BalanceStatement Requirement etAnalysis Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 13) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 14-18) Record the closing entries in the 'General Journal' tab (these are shown as items 19 and 20). (The company prepares closing entries by closing the appropriate accounts directly to Retained Earnings. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet 123 4 5 6 78 20 Lent $35,000 to an employee by accepting 6% note due in six months Note: Enter debits before credits General Journal General Ledger Income Trial Balance Requirement StatementBalance Sheet Analysis Prepare a multiple-step income statement for the period ended January 31, 2018. (Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance.) Unadjusted Big Blast Fireworks Multiple-Step Income Statement For the year ended January 31, 2018 Gross profit Total operating expenses Operating income Income before taxes Trial Balance Balance Sheet> Income Balance Sheet Analysis General Journal General Ledger Trial Balance Statement Requirement Prepare a classified balance sheet as of January 31, 2018. (Make sure to select 'Post-closing' from the dropdown, which will then populate the balances in those accounts from the post-closing trial balance.) Unadjusted Big Blast Fireworks Classified Balance Sheet January 31, 2018 Assets Liabilities Current Assets: Current Liabilities Total Current Liabilities Total Current Assets 0 Total Liabilities Noncurrent Assets: Stockholders' Equity Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity Total Assets