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3. Prepare an adjusted trial balance as of January 31, 2024. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. 5. Prepare a classified balance sheet as of January 31, 2024. 6. Record closing entries. 7. Analyze how well the company manages its inventory: a-1. Calculate the inventory turnover ratio for the month of January. a-2. If the industry average of the inventory turnover ratio for the month of January is 19.3 times, is the company managing its inventory more or less efficiently than other companies in the same industry? b-1. Calculate the gross profit ratio for the month of January. b-2. If the industry average gross profit ratio is 31%, is the company more or less profitable per dollar of sales than other companies in the same industry? c. Is the company's strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?

3. Prepare an adjusted trial balance as of January 31, 2024. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. 5. Prepare a classified balance sheet as of January 31, 2024. 6. Record closing entries. 7. Analyze how well the company manages its inventory: a-1. Calculate the inventory turnover ratio for the month of January. a-2. If the industry average of the inventory turnover ratio for the month of January is 19.3 times, is the company managing its inventory more or less efficiently than other companies in the same industry? b-1. Calculate the gross profit ratio for the month of January. b-2. If the industry average gross profit ratio is 31%, is the company more or less profitable per dollar of sales than other companies in the same industry? c. Is the company's strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need 4-7 including a-c please
**Required:** 1. **Record each of the transactions listed above, assuming a FIFO perpetual inventory system.** a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. - *Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.* b. The company records an adjusting entry for $2,960 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,800. 2. **Record adjusting entries on January 31 for the above transactions.** a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. - *Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.* b. The company records an adjusting entry for $2,960 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,800. 3. **Prepare an adjusted trial balance as of January 31, 2024.** 4. **Prepare a multiple-step income statement for the period ended January 31, 2024.** 5. **Prepare a classified balance sheet as of January 31, 2024.** 6. **Record closing entries.** 7. **Analyze how well the company manages its inventory:** a-1. Calculate the inventory turnover ratio for the month of January. a-2. If the industry average of the inventory turnover ratio for the month of January is 19.3 times, is the company managing its inventory more or less efficiently than other companies in the same industry? b-1. Calculate the gross profit ratio for the month of January. b-2. If the industry average gross profit ratio is 31%, is the company more or less profitable
Transcribed Image Text:**Required:** 1. **Record each of the transactions listed above, assuming a FIFO perpetual inventory system.** a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. - *Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.* b. The company records an adjusting entry for $2,960 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,800. 2. **Record adjusting entries on January 31 for the above transactions.** a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. - *Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.* b. The company records an adjusting entry for $2,960 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $12,800. 3. **Prepare an adjusted trial balance as of January 31, 2024.** 4. **Prepare a multiple-step income statement for the period ended January 31, 2024.** 5. **Prepare a classified balance sheet as of January 31, 2024.** 6. **Record closing entries.** 7. **Analyze how well the company manages its inventory:** a-1. Calculate the inventory turnover ratio for the month of January. a-2. If the industry average of the inventory turnover ratio for the month of January is 19.3 times, is the company managing its inventory more or less efficiently than other companies in the same industry? b-1. Calculate the gross profit ratio for the month of January. b-2. If the industry average gross profit ratio is 31%, is the company more or less profitable
### Financial Accounting: Inventory and Transactions **General Ledger Balances as of January 1, 2024:** | Accounts | Debit | Credit | |--------------------------------------|---------|---------| | Cash | $22,900 | | | Accounts Receivable | $39,000 | | | Allowance for Uncollectible Accounts | | $4,100 | | Inventory | $35,000 | | | Land | $69,100 | | | Accounts Payable | | $29,900 | | Notes Payable (12%, due in 3 years) | | $35,000 | | Common Stock | | $61,000 | | Retained Earnings | | $36,000 | | **Totals** | $166,000| $166,000| **Inventory and Transactions for January 2024:** - Beginning Inventory: - $35,000 consisting of 350 units at $100 each. - **January Transactions:** - Jan 3: Purchased 1,400 units for $154,000 (on account at $110 each). - Jan 8: Purchased 1,500 units for $172,500 (on account at $115 each). - Jan 12: Purchased 1,600 units for $192,000 (on account at $120 each). - Jan 15: Returned 125 units bought on Jan 12 due to defects. - Jan 19: Sold 4,600 units for $690,000 (costs determined by FIFO). - Jan 22: Received $665,000 from customers on account. - Jan 24: Paid $495,000 to suppliers on account. - Jan 27: Wrote off $3,000 of accounts receivable as uncollectible. - Jan 31: Paid $119,000 in salaries for January. **Additional Information for January 31, 2024:** a. An estimation is made that the remaining units purchased on January 12 will sell at $100 in February. - **Hint**: Calculate remaining units after returns and sales using FIFO by January 19. b. Adjusting entry for estimated future uncollectibles: $2,960. c. Interest accrued on notes payable for January; payable December 31. d. January's
Transcribed Image Text:### Financial Accounting: Inventory and Transactions **General Ledger Balances as of January 1, 2024:** | Accounts | Debit | Credit | |--------------------------------------|---------|---------| | Cash | $22,900 | | | Accounts Receivable | $39,000 | | | Allowance for Uncollectible Accounts | | $4,100 | | Inventory | $35,000 | | | Land | $69,100 | | | Accounts Payable | | $29,900 | | Notes Payable (12%, due in 3 years) | | $35,000 | | Common Stock | | $61,000 | | Retained Earnings | | $36,000 | | **Totals** | $166,000| $166,000| **Inventory and Transactions for January 2024:** - Beginning Inventory: - $35,000 consisting of 350 units at $100 each. - **January Transactions:** - Jan 3: Purchased 1,400 units for $154,000 (on account at $110 each). - Jan 8: Purchased 1,500 units for $172,500 (on account at $115 each). - Jan 12: Purchased 1,600 units for $192,000 (on account at $120 each). - Jan 15: Returned 125 units bought on Jan 12 due to defects. - Jan 19: Sold 4,600 units for $690,000 (costs determined by FIFO). - Jan 22: Received $665,000 from customers on account. - Jan 24: Paid $495,000 to suppliers on account. - Jan 27: Wrote off $3,000 of accounts receivable as uncollectible. - Jan 31: Paid $119,000 in salaries for January. **Additional Information for January 31, 2024:** a. An estimation is made that the remaining units purchased on January 12 will sell at $100 in February. - **Hint**: Calculate remaining units after returns and sales using FIFO by January 19. b. Adjusting entry for estimated future uncollectibles: $2,960. c. Interest accrued on notes payable for January; payable December 31. d. January's
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