Question
Requirement 1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select No journal entry required in the first
Requirement
1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Record the adjusting entries on January 31 for the transactions below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. 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 $4,500 and a two-year service life. 2. At the end of January, $26,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $14,500. 5. By the end of January, $4,500 of the gift cards sold on January 2 have been redeemed. 3. Prepare an adjusted trial balance as of January 31, 2018. 4. Prepare a multiple-step income statement for the period ended January 31, 2018. 5. Prepare a classified balance sheet as of January 31, 2018. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) 6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
7. Analyze the following for ACME Fireworks
Requirement 1:
a-1. Calculate the current ratio at the end of January.
a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average?
Requirement 2:
b-1. Calculate the acid-test ratio at the end of January.Requirement 2:
b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)?
Requirement 3:
c-1. Assume the notes payable were due on April 1, 2018, rather than April 1, 2019. Calculate the revised current ratio at the end of January.Requirement 3:
c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged.
The following information applies to the questions displayed below On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances Debit Credit 26,600 49,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Lquipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings $ 5,700 21,500 61,000 22,500 3,000 20,000 65,000 50.000 27100 Totals $180,800 $180,800 During January 2018, 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. The following information applies to the questions displayed below On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances Debit Credit 26,600 49,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Lquipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings $ 5,700 21,500 61,000 22,500 3,000 20,000 65,000 50.000 27100 Totals $180,800 $180,800 During January 2018, 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, $53,500Step by Step Solution
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