! Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 26,700 49,400 $ 5,800 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 21,600 62,000 23,000 3,190 30,100 66,000 51,000 26,700 $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, $53,680. 4. Prepare a multiple-step income statement for the period ended January 31, 2021. 4. Prepare a multiple-step income statement for the period ended January 31, 2021 ACME FIREWORKS Income Statement For the year ended January 31, 2021 Sales Revenue $ 310,000 Cost of Goods Sold (169,300) Gross Profit Salaries Expense Depreciation Expense Bad Debt Expense $ 140,700 0 140,700 Total operating expenses Operating Income Interest Expense Income Before Taxes Income Tax Expense Net Income 140,700 $ 140.700 14 15 16 17