On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,400 Accounts Receivable 48,800 Allowance for Uncollectible Accounts $ 5,500 Inventory 21,300 Land 59,000 Equipment 21,500 Accumulated Depreciation 2,800 Accounts Payable 29,800 Notes Payable (6%, due April 1, 2019) 63,000 Common Stock 48,000 Retained Earnings 27,900 Totals $ 177,000 $ 177,000
During January 2018, the following transactions occur: January 2
Sold gift cards totaling $10,600. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $160,000. January 15
Firework sales for the first half of the month total $148,000. All of these sales are on account. The cost of the units sold is $80,300. January 23 Receive $126,700 from customers on accounts receivable. January 25 Pay $103,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,100. January 30
Firework sales for the second half of the month total $156,000. Sales include $15,000 for cash and $141,000 on account. The cost of the units sold is $86,000. January 31 Pay cash for monthly salaries, $53,300.
The following information is available on January 31, 2018. 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 $4,700 and a two-year service life. The company estimates future uncollectible accounts. At the end of January, considering the total ending balance of the accounts receivable account shown in the general ledger, $24,000 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). The company estimates that 30% of the past due balance will be uncollectible and only 5% of the current balance will become uncollectible. Please record the estimated bad debt expense. Accrue the interest expense on notes payable for January. (Hint: recognize the expense and add as a liability, since the interest expense has not been paid yet) Accrue income taxes at the end of January are $14,300. (Hint: recognize the expense and add as a liability, since the income taxes have not been paid yet) By the end of January, $4,300 of the gift cards sold on January 2 have been redeemed.
Requirement: General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis
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On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Ac was first posted on June 30, 2020 at 6:08 am.
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