Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Required information Exercise 8-18 Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6) Skip to question [The following information applies to the questions displayed below.] On
Required information
Exercise 8-18 Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6)
Skip to question
[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 | $ | 26,700 | ||||||
Accounts Receivable | 49,400 | |||||||
Allowance for Uncollectible Accounts | $ | 5,800 | ||||||
Inventory | 21,600 | |||||||
Land | 62,000 | |||||||
Equipment | 23,000 | |||||||
Accumulated Depreciation | 3,100 | |||||||
Accounts Payable | 30,100 | |||||||
Notes Payable (6%, due April 1, 2022) | 66,000 | |||||||
Common Stock | 51,000 | |||||||
Retained Earnings | 26,700 | |||||||
Totals | $ | 182,700 | $ | 182,700 | ||||
During January 2021, the following transactions occur:
January | 2 | Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date. | ||
January | 6 | Purchase additional inventory on account, $163,000. | ||
January | 15 | Firework sales for the first half of the month total $151,000. All of these sales are on account. The cost of the units sold is $81,800. | ||
January | 23 | Receive $127,000 from customers on accounts receivable. | ||
January | 25 | Pay $106,000 to inventory suppliers on accounts payable. | ||
January | 28 | Write off accounts receivable as uncollectible, $6,400. | ||
January | 30 | Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500. | ||
January | 31 | Pay cash for monthly salaries, $53,600. |
Exercise 8-18 Part 3
3. Prepare an adjusted trial balance as of January 31, 2021.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started