19 (Algo) Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6) information applies to the questions displayed below] 2024, the general ledger of ACME Fireworks includes the following accou
19 (Algo) Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6) information applies to the questions displayed below] 2024, the general ledger of ACME Fireworks includes the following accou
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
h
![Required information.
Exercise 8-19 (Algo) Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6)
[The following information applies to the questions displayed below.]
On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Equipment
Accumulated Depreciation.
Accounts Payable
Notes Payable (6%, due April 1, 2025)
Common Stock
Retained Earnings
Totals
Debit
$26,000
48,000
20,900
55,000
19,500
$169,400
Credit
$5,100
2,400
29,400
59,000
44,000
29,500
$169,400
During January 2024, the following transactions occur:
January 2 Sold gift cards totaling $9,800. The cards are redeemable for merchandise within one year of the purchase
date.
January 6 Purchase additional inventory on account, $156,000. ACME uses the perpetual inventory system.
January 15 Firework sales for the first half of the month total $144,000. All of these sales are on account. The cost
of the units sold is $78,300.
January 23 Receive $126,300 from customers on accounts receivable.
January 25 Pay $99,008 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,700.
January 30 Firework sales for the second half of the month total $152,000. Sales include $12,000 for cash and $140,000
on account. The cost of the units sold is $84,000.
January 31 Pay cash for monthly salaries, $52,900.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ebee747-9a94-438b-80c8-0b3b296e8c92%2F6b0cb590-fc04-447f-a53f-fb5de7272f89%2Fmsvv0c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information.
Exercise 8-19 (Algo) Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6)
[The following information applies to the questions displayed below.]
On January 1, 2024, the general ledger of ACME Fireworks includes the following account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Equipment
Accumulated Depreciation.
Accounts Payable
Notes Payable (6%, due April 1, 2025)
Common Stock
Retained Earnings
Totals
Debit
$26,000
48,000
20,900
55,000
19,500
$169,400
Credit
$5,100
2,400
29,400
59,000
44,000
29,500
$169,400
During January 2024, the following transactions occur:
January 2 Sold gift cards totaling $9,800. The cards are redeemable for merchandise within one year of the purchase
date.
January 6 Purchase additional inventory on account, $156,000. ACME uses the perpetual inventory system.
January 15 Firework sales for the first half of the month total $144,000. All of these sales are on account. The cost
of the units sold is $78,300.
January 23 Receive $126,300 from customers on accounts receivable.
January 25 Pay $99,008 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,700.
January 30 Firework sales for the second half of the month total $152,000. Sales include $12,000 for cash and $140,000
on account. The cost of the units sold is $84,000.
January 31 Pay cash for monthly salaries, $52,900.
Transcribed Image Text:Exercise 8-19 (Algo) Part 2
• 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 $3,900 and a two-year service life.
The company records an adjusting entry for $12,000 for estimated future uncollectible accounts.
The company has accrued interest on notes payable for January.
The company has accrued income taxes at the end of January of $13,900.
By the end of January, $3,900 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold).
2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
January 31
3
Record entry
4
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 $3,900 and a two-year service life.
Record the depreciation for the month of January.
Note: Enter debits before credits.
5
General Journal
Clear entry
Debit
Credit
View general journal
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education