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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
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 27000 50,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings $6,100 21,900 65,000 24,500 3,400 30,400 69,000 54,000 25,500 Totals $188,400 $188,400 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $11,800. The cards are redeemable for merchandise within one year of the purchase date January 6. Purchase additional inventory on account, $166,000 January 15. Firework sales for the first half of the month total $154,000. All of these sales are on account. The cost of the units sold is $83,300. January 23. Receive $127,300 from customers on accounts receivable January 25. Pay $109,000 to inventory suppliers on accounts payable January 28. Write off accounts receivable as uncollectible, $6,700. January 30. Firework sales for the second half of the month total $162,000. Sales include $10,000 for cash and $152,000 on account. The cost of the units sold is $89,000. January 31. Pay cash for monthly salaries, $53,900. 4. Prepare a multiple-step income statement for the period ended January 31, 2018. ACME FIREWORKS Income Statement For the year ended January 31, 2018 Total operating expenses
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