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Exercise 8-18 Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6)

[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	$	27,000
Accounts Receivable		50,000
Allowance for Uncollectible Accounts					$	6,100
Inventory		21,900
Land		65,000
Equipment		24,500
Accumulated Depreciation						3,400
Accounts Payable						30,400
Notes Payable (6%, due April 1, 2022)						69,000
Common Stock						54,000
Retained Earnings						25,500
Totals	$	188,400			$	188,400

During January 2021, the following transactions occur:

January		2		Sold gift cards totaling $11,800. The cards are redeemable for merchandise within one year of the purchase date.
January		6		Purchase additional inventory on account, $166,000.
January		15		Firework sales for the first half of the month total $154,000. All of these sales are on account. The cost of the units sold is $83,300.
January		23		Receive $127,300 from customers on accounts receivable.
January		25		Pay $109,000 to inventory suppliers on accounts payable.
January		28		Write off accounts receivable as uncollectible, $6,700.
January		30		Firework sales for the second half of the month total $162,000. Sales include $10,000 for cash and $152,000 on account. The cost of the units sold is $89,000.
January		31		Pay cash for monthly salaries, $53,900.

Exercise 8-18 Part 4

4. Prepare a multiple-step income statement for the period ended January 31, 2021.