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ecord purchase of 1,700 units for $187,000 on account ($110 each). : Enter debits before credits. Date General Journal Debit Credit muary 08

ecord purchase of 1,700 units for $187,000 on account ($110 each). : Enter debits before credits. Date General Journal Debit Credit muary 08

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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Record purchase of 1,700 units for $187,000 on account ($110 each). Note: Enter debits before credits. Date General Journal Debit Credit January 08 Record entry Clear entry View general journal
Transcribed Image Text:Record purchase of 1,700 units for $187,000 on account ($110 each). Note: Enter debits before credits. Date General Journal Debit Credit January 08 Record entry Clear entry View general journal
On January 1, 2021, the general ledger of Big Blast Fireworks Includes the following account balances: Accounts Debit Credit Cash $ 23, 300 Accounts Receivable Allowance for Uncollectible Accounts 40, 000 $ 4,500 Inventory 37, 000 72,108 Land Accounts Payable Notes Payable (6%, due in 3 years) 28,900 37,e00 Common Stock 63,000 Retained Earnings 39,e00 Totals $172,480 $172,400 The $37,000 beginning balance of Inventory consists of 370 units, each costing $100. During January 2021. Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 1,680 units for $168,8ee on account ($185 each). January 8 Purchase 1,700 units for $187,0ee on account ($11e each). January 12 Purchase 1,800 units for $207,0ee on account ($115 each). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $788,00e. The cost of the units sold is deternined using a FIF0 perpetual inventory system. January 22 Receive $753,80e from custoners on accounts receivable. January 24 Pay $528,888 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,288. January 31 Pay cash for salaries during January, $121,800. The following Information is available on January 31, 2021. a. At the end of January. the company estimates that the remalning units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4,700 of accounts recelvabie on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts recelvable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balance calculated in the general ledger.) C. Accrued Interest expense on notes payable for January. Interest Is expected to be pald each December 31. d. Accrued income taxes at the end of January are $13,000. Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual Inventory system. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 5 6 7 8 9 1 3 4 10 Record purchase of 1,600 units for $168,000 on account ($105 each). Note: Enter debits before credits. Date General Journal Debit Credit January 03
Transcribed Image Text:On January 1, 2021, the general ledger of Big Blast Fireworks Includes the following account balances: Accounts Debit Credit Cash $ 23, 300 Accounts Receivable Allowance for Uncollectible Accounts 40, 000 $ 4,500 Inventory 37, 000 72,108 Land Accounts Payable Notes Payable (6%, due in 3 years) 28,900 37,e00 Common Stock 63,000 Retained Earnings 39,e00 Totals $172,480 $172,400 The $37,000 beginning balance of Inventory consists of 370 units, each costing $100. During January 2021. Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 1,680 units for $168,8ee on account ($185 each). January 8 Purchase 1,700 units for $187,0ee on account ($11e each). January 12 Purchase 1,800 units for $207,0ee on account ($115 each). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $788,00e. The cost of the units sold is deternined using a FIF0 perpetual inventory system. January 22 Receive $753,80e from custoners on accounts receivable. January 24 Pay $528,888 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $3,288. January 31 Pay cash for salaries during January, $121,800. The following Information is available on January 31, 2021. a. At the end of January. the company estimates that the remalning units of inventory are expected to sell in February for only $100 each. b. The company estimates future uncollectible accounts. The company determines $4,700 of accounts recelvabie on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts recelvable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balance calculated in the general ledger.) C. Accrued Interest expense on notes payable for January. Interest Is expected to be pald each December 31. d. Accrued income taxes at the end of January are $13,000. Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual Inventory system. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 5 6 7 8 9 1 3 4 10 Record purchase of 1,600 units for $168,000 on account ($105 each). Note: Enter debits before credits. Date General Journal Debit Credit January 03
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