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On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Debit Credit Accounts $25,100 46,200 $ 20,000 46,000 15,000 Cash
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Debit Credit Accounts $25,100 46,200 $ 20,000 46,000 15,000 Cash Accounts Receivable Allowance for Uncollectible Accounts 4,200 Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) 1,500 28,500 50,000 35,000 Common Stock Retained Earnings 33,100 $152,300 $152,300 Totals During January 2021, the following transactions occur: 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. 6 Purchase additional inventory on account, $147,000 January January 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 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 Total Operating Expenses
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