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 Credit $5,100 2,400 29,400 59,000 44,000 29,500 $169,400 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 systen. 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.
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 Credit $5,100 2,400 29,400 59,000 44,000 29,500 $169,400 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 systen. 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
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Transcribed Image Text: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
Credit
$5,100
2,400
29,400
59,000
44,000
29,500
$169,400
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, $52,900.
Transcribed Image Text:ACME FIREWORKS
Income Statement
For the Month Ended January 31, 2024
Sales Revenue
Cost of Goods Sold
Gross Profit
Salaries Expense
Bad Debt Expense
Depreciation Expense
Total Operating Expenses.
Operating Income
Income before Taxes
Income Tax Expense
Net Income
BELLES
(9
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$
0
0
0
0
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