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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 | $ | 26,600 | ||||||
Accounts Receivable | 49,200 | |||||||
Allowance for Uncollectible Accounts | $ | 5,700 | ||||||
Inventory | 21,500 | |||||||
Land | 61,000 | |||||||
Equipment | 22,500 | |||||||
Accumulated Depreciation | 3,000 | |||||||
Accounts Payable | 30,000 | |||||||
Notes Payable (6%, due April 1, 2022) | 65,000 | |||||||
Common Stock | 50,000 | |||||||
Retained Earnings | 27,100 | |||||||
Totals | $ | 180,800 | $ | 180,800 | ||||
During January 2021, the following transactions occur:
January | 2 | Sold gift cards totaling $11,000. The cards are redeemable for merchandise within one year of the purchase date. | ||
January | 6 | Purchase additional inventory on account, $162,000. | ||
January | 15 | Firework sales for the first half of the month total $150,000. All of these sales are on account. The cost of the units sold is $81,300. | ||
January | 23 | Receive $126,900 from customers on accounts receivable. | ||
January | 25 | Pay $105,000 to inventory suppliers on accounts payable. | ||
January | 28 | Write off accounts receivable as uncollectible, $6,300. | ||
January | 30 | Firework sales for the second half of the month total $158,000. Sales include $14,000 for cash and $144,000 on account. The cost of the units sold is $87,000. | ||
January | 31 | Pay cash for monthly salaries, $53,500. |
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