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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
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: Accounts Debit Credit Cash 5 25,600 Accounts Receivable 47,20e Allowance for uncollectible Accounts 57ee Inventory 20,589 Land 51,000 Equipment 17,500 Accumulated Depreciation 2,689 Accounts Payable 29,000 Notes Payable (6%, due April 1, 2022) 55, common Stock go Retained Earnings 31,100 Totals 3161,800 $161,800 During January 2021, the following transactions occur January 2 Sold gift cards totaling 59,900. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $152,09 January 15 Firework sales for the first half of the month total $140,00. All of these sales are on account. The cost of the units sold is $74,380. January 23 Receive $125,9ee from customers D Decounts receivable. January 25 Pay $95.ee to inventory suppliers accounts payable. January 25 write off accounts receivable is collectible, 39,000. January 38 Firework sales for the second half of the month total 5143,000 Sales include $10,000 for cash and $138.000 on account. The cost of the units sold 1 582,000 January 31 Pay Cash for monthly salaries, 952, 4. Prepare a multiple-step income statement for the period ended January 31, 2021 ACME FIREWORKS Income Statement For the year ended Vanuary 31, 2021 Sales Revenue 8.291 500 Cost of Goods Sold 158 800 Gross Profit Salaries Expense 52.500 Depreciation Expense 575 Bad Debt Expense 12.520 $ 133.200 65.595 67.609 2751 Total operating expenses Operating Income Interest Expense Income Before Taxes Income Tax Expense Net Income 67630 13.500 $ 83 830
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