Question
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: AccountsDebitCreditCash$25,100Accounts Receivable46,200Allowance for Uncollectible Accounts$4,200Inventory20,000Land46,000Equipment15,000Accumulated Depreciation1,500Accounts Payable28,500Notes Payable (6%, due
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:
AccountsDebitCreditCash$25,100Accounts Receivable46,200Allowance for Uncollectible Accounts$4,200Inventory20,000Land46,000Equipment15,000Accumulated Depreciation1,500Accounts Payable28,500Notes Payable (6%, due April 1, 2022)50,000Common Stock35,000Retained Earnings33,100Totals$152,300$152,300
During January 2021, the following transactions occur:
January2Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date.January6Purchase additional inventory on account, $147,000.January15Firework 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.January23Receive $125,400 from customers on accounts receivable.January25Pay $90,000 to inventory suppliers on accounts payable.January28Write off accounts receivable as uncollectible, $4,800.January30Firework 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.January31Pay cash for monthly salaries, $52,000.
4.Prepare multiple-step income statement for the period ended January 31, 2021
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