[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 Payablo (68, due Japril 1, 2022) Common Stock Retained Earnings Totals 21,600 62,000 23,000 3,100 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 salen for the first halt of the month total $152,000. 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 an uncollectible, $6,400. January 30 Pirework sales for the second half of the month total $159,000. sales include $13,000 for cash ane $146,000 on account. The cost of the units sold is $87,500. January 31 Pay cash for monthly salaries, $53,600. 1. Record each of the transactions listed above. Of no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) No General Journal Date January 02 Credit 1 Cash Dobit 11.200 Deferred Revenue 11.200 2 January 06 Inventory Accounts Payable 163,000 163,000 3 January 15 Accounts Receivable Sales Revenue 151,000 151,000 4 January 15 Cost of Goods Sold Inventory 81,800 81,800 5 January 23 Cash Accounts Receivable 127.000 127,000 6 January 25 Accounts Payable Cash 106,000 105,000 7 January 28 Allowance for Uncollectible Accounts Accounts Receivable 8.400 8,400 8 January 30 Cash Accounts Receivable Sales Revenue 13,000 146,000 159.000 D January 30 Cont of Goods Sold Inventory 87,500 87.500 10 January 31 Salarios Expense Cash 53,600 53,000 D Depreciation on the equipment for the month of January and using the straighine method. At the time the quam was purchased the company estimated residual value of $5.000 and a two-year service fe The company estimates future uncollectible accounts. The company determines $27.000 ot accounts receivable on 31 are post de and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January are not past due, and 4% of these accounts are estimated to be uncollectible. Hint: Use the January 31 accounts receivable balance calculated in the general ledge) Accued interest expense on notes payable for January Accrued income taxes at the end of January are $1,600 . By the end of January, 54,600 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (19 no entry is required for a particular transaction/event select "No Journal Entry Required in the first account field) No C General Journal Depreciation Experte Acomercio TO wy31 54500 tad tapere Allowance to Uno Account 3 January 330 Epe wat Payable 330 4 4000 come Tax Exer Income Tax Payable 14 5 Day 1 Defende 4.000 4100 * BO 888 F5 % & 2 3 4 5 6 7 8 9 W E R T Y Y 1 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Land Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Interest Payable Interest Expense Sales Revenue Cost of Goods Sold Salaries Expense Totals $ 0 $ January 15 Firework sales for the first half of the month total $151,000. All of 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 $146,000 on account. The cost of the units sold is $87,500. January 31 Pay cash for monthly salaries, $53,600. 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 Cost of Goods Sold Gross Profit 0 0 0 Total operating expenses Operating Loss Salaries Expense Income Tax Expense Interest Expense 0 $ 0 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 Less: Allowance for Uncollectible Accounts Inventory Notes Payable Interest Payable O Accounts Payable Total Current Assets 0 Total Current Liabilities 0 0 Total Liabilities Stockholders' Equity Common Stock (Retained Earnings Land Equipment Accumulated Depreciation 0 Total Stockholders' Equity Total Liabilities and Stockholders Equity $ 0 S 0 Total Assets