Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts $2,700 Inventory 42,000 Land 79,600 Accounts Payable 29,200 Notes Payable (8%, due in 3 years) 42,000 Common Stock 68,000 Retained Earnings 46,500 Totals $188,400 $188,400 The $42,000 beginning balance of Inventory consists of 420 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ($110 each). January 8 Purchase 1,150 units for $132,250 on account ($115 each). January 12 Purchase 1,250 units for $150,000 on account ($120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $529,000 from customers on accounts receivable. January 24 Pay $359,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,100. January 31 Pay cash for salaries during January, $110,000. The following information is available on January 31, 2024. 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 $5,070 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.
Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts $2,700 Inventory 42,000 Land 79,600 Accounts Payable 29,200 Notes Payable (8%, due in 3 years) 42,000 Common Stock 68,000 Retained Earnings 46,500 Totals $188,400 $188,400 The $42,000 beginning balance of Inventory consists of 420 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ($110 each). January 8 Purchase 1,150 units for $132,250 on account ($115 each). January 12 Purchase 1,250 units for $150,000 on account ($120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $529,000 from customers on accounts receivable. January 24 Pay $359,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,100. January 31 Pay cash for salaries during January, $110,000. The following information is available on January 31, 2024. 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 $5,070 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![ounts
Debit
Credit
Cash
$24,300
Accounts Receivable
42,500
Allowance for Uncollectible Accounts
$2,700
Inventory
42,000
Land
79,600
Accounts Payable
29,200
Notes Payable (8%, due in 3 years)
42,000
Common Stock
68,000
Retained Earnings
46,500
Totals
$188,400
$188,400
The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2024, Big Blast
Fireworks had the following inventory transactions:
January 3 Purchase 1,050 units for $115,500 on account ($110 each).
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
January 12 Purchase 1,250 units for $150,000 on account ($120 each).
January 15 Return 160 of the units purchased on January 12 because of defects.
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual
inventory system.
January 22 Receive $529,000 from customers on accounts receivable.
January 24 Pay $359,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,100.
January 31 Pay cash for salaries during January, $110,000.
The following information is available on January 31, 2024.
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 $5,070 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 $13,500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa67304b1-3709-41d7-a763-4eb6f13a6e63%2F471a0ccf-0aae-40b3-b1ac-94b511c8c3c1%2Fmha5zuw_processed.png&w=3840&q=75)
Transcribed Image Text:ounts
Debit
Credit
Cash
$24,300
Accounts Receivable
42,500
Allowance for Uncollectible Accounts
$2,700
Inventory
42,000
Land
79,600
Accounts Payable
29,200
Notes Payable (8%, due in 3 years)
42,000
Common Stock
68,000
Retained Earnings
46,500
Totals
$188,400
$188,400
The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2024, Big Blast
Fireworks had the following inventory transactions:
January 3 Purchase 1,050 units for $115,500 on account ($110 each).
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
January 12 Purchase 1,250 units for $150,000 on account ($120 each).
January 15 Return 160 of the units purchased on January 12 because of defects.
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual
inventory system.
January 22 Receive $529,000 from customers on accounts receivable.
January 24 Pay $359,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,100.
January 31 Pay cash for salaries during January, $110,000.
The following information is available on January 31, 2024.
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 $5,070 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 $13,500.
Transcribed Image Text:Total current assets
Assets
BIG BLAST FIREWORKS
Classified Balance Sheet
January 31, 2024
0
0 Total current liabilities
Liabilities
0
Total liabilities
0
Stockholders' Equity
Total stockholders' equity
0
Total assets
$
0
Total liabilities and stockholders' equity
$
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps with 7 images
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