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 $99,000 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.
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 $99,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Exercise 8-19 (Algo) Part 4
4. Prepare a multiple-step income statement for the period ended January 31, 2024.
ACME FIREWORKS
Income Statement
For the Month Ended January 31, 2024
Total Operating Expenses
![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
January 23 Receive $126,300 from customers on accounts receivable.
January 25 Pay $99,000 to inventory suppliers on accounts payable.
January 31 Pay cash for monthly salaries, $52,900.
Credit
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.
on account. The cost of the units sold is $84,000.
$5,100
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.
2,400
29,400
59,000
44,000
29,500
$169,400
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d07bb18-8908-4249-a489-768d0c063ce4%2Fb812d5f1-6b51-4082-af86-7504dc6855a2%2Fzks5ub_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
January 23 Receive $126,300 from customers on accounts receivable.
January 25 Pay $99,000 to inventory suppliers on accounts payable.
January 31 Pay cash for monthly salaries, $52,900.
Credit
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.
on account. The cost of the units sold is $84,000.
$5,100
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.
2,400
29,400
59,000
44,000
29,500
$169,400
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
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