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prepare a classified balance sheet please ! :) Exercise 6-21 (Static) Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 66,677 On January 1,
prepare a classified balance sheet please ! :)
Exercise 6-21 (Static) Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 66,677 On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,260 units for $126,000 on account ( $105 each). January 8 purchase 1,360 units for \$143, eee on account (s110 each). Jathary o rurchase 1,200 unhL ror 3143,000 on account (3110 ach). January 12 Purchase 1,480 units for $161,080 on account (\$115 each). January 15 Return 180 of the units purchased on January 12 because of defects. January 19 Sell 4,800 units on account for $600,600. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $580,600 from customers on accounts receivable. January 24 Pay $41,0 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,500. January 31 Pay cash for salaries during January, $128,000. The following information is avallable on January 31,2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,000 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,300. Exercise 6-21 (Static) Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2024 Step by Step Solution
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