Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,800 Accounts Receivable 49,600 Allowance
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||||
Cash | $ | 26,800 | ||||||
Accounts Receivable | 49,600 | |||||||
Allowance for Uncollectible Accounts | $ | 5,900 | ||||||
Inventory | 21,700 | |||||||
Land | 63,000 | |||||||
Equipment | 23,500 | |||||||
Accumulated Depreciation | 3,200 | |||||||
Accounts Payable | 30,200 | |||||||
Notes Payable (6%, due April 1, 2022) | 67,000 | |||||||
Common Stock | 52,000 | |||||||
Retained Earnings | 26,300 | |||||||
Totals | $ | 184,600 | $ | 184,600 | ||||
During January 2021, the following transactions occur:
January | 2 | Sold gift cards totaling $11,400. The cards are redeemable for merchandise within one year of the purchase date. | ||
January | 6 | Purchase additional inventory on account, $164,000. | ||
January | 15 | Firework sales for the first half of the month total $152,000. All of these sales are on account. The cost of the units sold is $82,300. | ||
January | 23 | Receive $127,100 from customers on accounts receivable. | ||
January | 25 | Pay $107,000 to inventory suppliers on accounts payable. | ||
January | 28 | Write off accounts receivable as uncollectible, $6,500. | ||
January | 30 | Firework sales for the second half of the month total $160,000. Sales include $11,000 for cash and $149,000 on account. The cost of the units sold is $88,000. | ||
January | 31 | Pay cash for monthly salaries, $53,700. |
Prepare a classified balance sheet as of January 31, 2021.
ACME FIREWORKS
Classified Balance SheetJanuary 31, 2021
Assets. Liabilities
Total Current Assets:
Stockholder Equity
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