Required information 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 $ 25,200 Accounts Receivable. 46,400 Allowance for Uncollectible $ 4,300 Accounts Inventory 20,100 Land 47,000 Equipment 16,000 Accumulated Depreciation. 1,600 Accounts Payable 28,600 Notes Payable (6%, due April 1, 2022) 51, eee Common Stock 36,000 Retained Earnings 33,200 Totals $154,700 $154,700 During January 2021, the following transactions occur January 2 Sold gift cards totaling $8,208. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $148,000. January 15 Firework sales for the first half of the month total $136,000. All of these sales are on account. The cost of the units sold is $74,300. January 23 Receive $125,500 from customers on accounts receivable. January 25 Pay $91,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,900. January 30 Firework sales for the second half of the month total $144,000. Sales include $10,000 for cash and $134,000 on account. The cost of the units sold is $80,000. January 31 Pay cash for monthly salaries, $52,100. Exercise 8-18 Part 1 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record sale of gift cards totaling $8,200. The cards are redeemable for merchandise within one year of the purchase date. Note: Enter debits before credits. Date General Journal Debit Credit January 02 Exercise 8-18 Part 2 . Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,400 and a two-year service life. The company estimates future uncollectible accounts. The company determines $12,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) . Accrued interest expense on notes payable for January. Accrued income taxes at the end of January are $13,100. . By the end of January, $3,100 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3.400 and a two-vear service life. Note: Enter debits before credits. Date General Journal Debit Credit January 31 View general journal Clear entry Record entry Exercise 8-18 Part 3 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Debit Credit Accounts Totals