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On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,100 Accounts Receivable 46,200 Allowance
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||||
Cash | $ | 25,100 | ||||||
Accounts Receivable | 46,200 | |||||||
Allowance for Uncollectible Accounts | $ | 4,200 | ||||||
Inventory | 20,000 | |||||||
Land | 46,000 | |||||||
Equipment | 15,000 | |||||||
Accumulated Depreciation | 1,500 | |||||||
Accounts Payable | 28,500 | |||||||
Notes Payable (6%, due April 1, 2022) | 50,000 | |||||||
Common Stock | 35,000 | |||||||
Retained Earnings | 33,100 | |||||||
Totals | $ | 152,300 | $ | 152,300 | ||||
During January 2021, the following transactions occur:
January | 2 | Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. | ||
January | 6 | Purchase additional inventory on account, $147,000. | ||
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. |
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 Less: Allowance for Uncollectible Accounts 0 Total Current Assets 0 Total Current Liabilities 0 0 Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets $ 0 $ 0
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