Exercise 9-24 (Algo) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.) On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $13,000 Credit Accounts Receivable 37,600 Allowance for Uncollectible Accounts $ 3,600 Inventory 153,800 Land Buildings 85,300 138,000 Accumulated Depreciation 11,400 Accounts Payable 37,500 Common Stock 218,000 Retained Earnings 157,200 Totals $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. January 4 January 10 Pay cash on accounts payable, $29,000. Receive $32,800 from customers on accounts receivable. January 15 Pay cash for salaries, $30,700. January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500. January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Exercise 9-24 (Algo) Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round intermediate calculations.) FREEDOM FIREWORKS Multiple-Step Income Statement For the Month Ended January 31, 2024 Sales Revenue Gross Profit Expenses 0
Exercise 9-24 (Algo) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.) On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $13,000 Credit Accounts Receivable 37,600 Allowance for Uncollectible Accounts $ 3,600 Inventory 153,800 Land Buildings 85,300 138,000 Accumulated Depreciation 11,400 Accounts Payable 37,500 Common Stock 218,000 Retained Earnings 157,200 Totals $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. January 4 January 10 Pay cash on accounts payable, $29,000. Receive $32,800 from customers on accounts receivable. January 15 Pay cash for salaries, $30,700. January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500. January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1. Exercise 9-24 (Algo) Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round intermediate calculations.) FREEDOM FIREWORKS Multiple-Step Income Statement For the Month Ended January 31, 2024 Sales Revenue Gross Profit Expenses 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 9-24 (Algo) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8)
[The following information applies to the questions displayed below.)
On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances:
Accounts
Cash
Debit
$13,000
Credit
Accounts Receivable
37,600
Allowance for Uncollectible Accounts
$ 3,600
Inventory
153,800
Land
Buildings
85,300
138,000
Accumulated Depreciation
11,400
Accounts Payable
37,500
Common Stock
218,000
Retained Earnings
157,200
Totals
$ 427,700
$ 427,700
During January 2024, the following transactions occur:
January 1 Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6%
annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60
months.
January 4
January 10 Pay cash on accounts payable, $29,000.
Receive $32,800 from customers on accounts receivable.
January 15 Pay cash for salaries, $30,700.
January 30 Firework sales for the month total $210,600. The cost of the units sold is $121,500.
January 31 Pay the first monthly installment of $2,281 related to the $118,000 borrowed on January 1.
Exercise 9-24 (Algo) Part 4
4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round intermediate calculations.)
FREEDOM FIREWORKS
Multiple-Step Income Statement
For the Month Ended January 31, 2024
Sales Revenue
Gross Profit
Expenses
0
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