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: Debit $ 26.100 Credit 43,200 $ 5,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (%, due April 1, 2022) Common Stock Retained Earnings Totals 21,000 56,000 20,000 2,500 29,500 60,000 45,000 29,100 $171,300 $171,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $10,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $157,000. January 15 Pirework sales for the first half of the month total $145, eee. All of these sales are on account. The cost of the units sold is $78,800. January 23 Receive $125,408 from customers on accounts receivable. January 25 Pay $100,000 to inventory suppliers on accounts payable January 28 write off accounts receivable as uncollectible, 55,800 January 38 Firework sales for the second half of the month total $153,600. Sales include $16,000 for cash and $137,000 on account. The cost of the units sold is $64,500. January 31 Pay cash for monthly salaries, $53,000 3. Prepare an adjusted trial balance as of 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 $ 298,000 Deferred Revenue Gross Profit $ 298,000 Total operating expenses 0 298,000 298,000 $ 298,000 5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) ACME FIREWORKS Classified Balance Sheet January 31, 2021 Liabilities Assets Cash 'Accounts Receivable Loss: Allowance for Uncollectible Accounts inventory $198.000 000 $ 86,500 10,000 $ 25,500 Accounts Payable Deferred Revenue 198,600 14.700 Total Current Assets 96,500 60,000 156,500 238,800 Total Current Liabilities Notes Payable Total Liabilities Stockholders' Equity 56,000 Common Stock 20,000 Retained Earings 2,500) Land Equipment Accumulated Depreciation 45,000 29.100 Total Assets $ 312,300 Total Stockholders' Equity 74,100 Total Liabilities and Stockholders' Equity $ 230,600 6. Record closing entries (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the closing entry for expense accounts. Note: Enter debits before credits Date January 31, 2021 General Journal Debit Credit Record entry Clear entry View general Journal
