On January 1, 2021, the general ledger of ACME fireworks includes the following account balances: (see picture)
Prepare and adjust a trial balance as of January 31, 2021.
Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,600 Accounts Receivable 49,200 Allowance for Uncollectible Accounts $ 5,700 Inventory 21,500 Land 61,000 Equipment 22,500 Accumulated Depreciation 3,000 Accounts Payable 30,000 Notes Payable (64, due April 1, 2822) 65,000 Common Stock 50,000 Retained Earnings 27, 100 Totals $180,800 $180,800 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $11,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $162,000. January 15 Firework sales for the first half of the month total $150,000. All of these sales are on account. The cost of the units sold is $81,300. January 23 Receive $126,900 from customers on accounts receivable. January 25 Pay $105,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,300. January 38 Firework sales for the second half of the month total $158,000. Sales include $14,000 for cash and $144,000 on account. The cost of the units sold is $87,000. January 31 Pay cash for monthly salaries, 553,500. 1. Record each of the transactions listed above. (of no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) Answer is complete and correct. We De Credit 1 January 02 Cash 11,000 Deferred Revenue 11,000 2 January 08 162,000 Inventory Accounts Payable O 162,000 3 January 15 150,000 Accounts Receivable Sales Revenue 150,000 4 January 15 Cost of Goods Sold Inventory slo 81,300 81,300 5 January 23 Cash Accounts Receivable 126,900 126,900 6 January 25 Accounts Payable Cash 105,000 slo 105,000 7 January 28 6,300 Allowance for Uncollectible Accounts Accounts Receivable 6,300 8 January 30 Cash Accounts Receivable Sales Revenue OO 14,000 144,000 158,000 9 Sanuary 30 87.000 Cost of Goods Sold Inventory O 87,000 10 January 31 53,500 Salaries Expense Cash ols 53.500 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete and correct. No Date Credit 1 January 31 General Journal Depreciation Expense Accumulated Depreciation Dobit 750 > 750 2 January 31 Bad Debt Expense Allowance for Uncollectible Accounts 15,760 > 15,760 January 31 325 Interest Expense Interest Payable SIS 325 4 January 31 Income Tax Expense Income Tax Payable 14,500 14,500 5 January 31 Deferred Revenue Sales Revenue 4,500 4,500 3. Prepare an adjusted trial balance as of January 31, 2021. Answer is complete and correct. Credit 15,160 ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Dobit Cash 20,000 Accounts Receivable 210,000 Allowance for Uncollectible Accounts Inventory 15,200 Land 61,000 Equipment 22,500 Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Deferred Revenue Sales Revenue Cost of Goods Sold 168,300 Salaries Expense 53,500 Depreciation Expense 750 Bad Debt Expense 15,760 Interest Expense 325 Interest Payable Income Tax Expense 14,500 Income Tax Payable Totals $ 581,835 3,750 87,000 65.000 50.000 27.100 6,500 312,500 325 14,500 is 581,835 4. Prepare a multiple-step income statement for the period ended January 31, 2021. ACME FIREWORKS Income Statement For the year ended January 31, 2021 $ $ 0 Total operating expenses 0 0 $ 5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) ACME FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities 0 Lass: Allowance for Uncollectible Accounts 0 0 Total Current Assets Total Current Liabilities 0 Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ $ 0 Total Assets 6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the dosing entry for revenue accounts. Note: Enter debits before credits General Journal Debit Credit Date January 31, 2021 Record entry Clear entry View general Journal 6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Ent field.) View transaction list Journal entry worksheet
