**Transcription for Educational Website:**---On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:| Accounts | Debit | Credit ||---------------------------------------|-----------|------------|| Cash | $23,808 | || Accounts Receivable | $40,800 | || Allowance for Uncollectible Accounts | | $4,500 || Inventory | $37,000 | || Land | $72,100 | || Accounts Payable | | $29,900 || Notes Payable (6%, due in 3 years) | | $28,000 || Common Stock | | $83,000 || Retained Earnings | | $77,308 || Totals | $172,408 | $172,708 |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 1,600 units for $168,000 on account ($105 each).- **January 8**: Purchase 1,200 units for $132,000 on account ($110 each).- **January 12**: Purchase 800 units for $96,000 on account ($120 each).- **January 15**: Return 130 defective units from January 12 purchase.- **January 19**: Sell 3,000 units on account for $480,000. The cost of units sold is determined using a FIFO perpetual inventory system. On January 19, units on account remain unpaid.- **January 22**: Receive $353,000 from customers on accounts receivable.- **January 24**: Pay $320,000 to inventory suppliers on accounts payable.- **January 27**: Write off accounts receivable as uncollectible, $3,800.- **January 31**: Pay cash for salaries during January, $121,000.The following information is available on January 31, 2021:a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.b. The company estimates

Big Blast Fireworks Multiple Step operating income statement For period ended 31st January…

Answered: Prepere s multiple-step income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The company uses the periodic inventory system. A physical count of inventory on December 31 resulted in an inventory amount of $50,000. Instructions 1. Prepare a retained earnings statement for the year ending December 31, 2019. 2. Prepare a Statement of Financial Position as at December 31, 2019. A. Report Form B. Account Form 3. Calculate Earnings Per Share for the year ending December 31, 2019.
State the effect the following situation would have on the amount of annual net income reported for 2019. No adjustment was made for the revenue earned previously recorded as unearned revenue for USD 6,000 as of 2019 December 31. Group of answer choices Net income is overstated, liabilities are understated Net income is understated, assets are overstated Net income is overstated, assets are overstated Net income is understated, liabilities are overstated
Following information is available for Nick Company for the year ended 2020: Additional information: Amount for accounts receivable (net) at the end of 2019 was $57,000. The inventory as of 01st of January 2020 is calculated as $22,000. Required: Calculation of the following for the year ended 2020: a) Working capital b) Quick ratio c) Inventory turnover ratio. d) Accounts receivable turnover ratio and number of days in the collection assuming 366 days a year.
2021 2020 2019 2018 2017 Sales Cost of goods sold Accounts receivable $ 479,191 246,837 23,289 $ 315,257 $ 247,260 $ 167,634 $ 120,600 162,481 18,379 129,153 16,888 87,443 9,807 61,506 8,249 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three acco situation as revealed by the trend percents appears to be favorable or unfavorable. 2021: 2020: 2019: 2018: 2017: Trend Percent for Net Sales: Numerator: 1 Denominator: 1 1 Is the trend percent for Net Sales favorable or unfavorable? 2021: 2020: 2019: 2018: 2017: Trend Percent for Cost of Goods Sold: Numerator: Denominator: 1 1 1 Is the trend percent for Cost of Goods Sold favorable or unfavorable? 2021: 2020: 2019: 2018: 2017: Trend Percent for Accounts Receivable: Numerator: Denominator: Is the trend percent for Accounts Receivable favorable or unfavorable? = Trend percent % 9900 = % = % = % % Trend percent % % % % % 11 Trend percent = % % % = % %
You are looking into the accounts of a company that has presented using LIFO for inventory. You see in the notes the LIFO Reserve in 2019 and 2020 were 160,000 and 240,000 respectively. The company pays tax at 30% in both years. Show the relevant adjustments you would have to make to the Balance Sheet and income statement to convert the company to a FIFO basis. Describe the effect that this conversion would have on net profit margin, gross profit margin, debt to equity, inventory turnover and current ratio in 2020. Another company has written down some inventory. Explain why a company would need to write down inventory and the effects this would have on the company accounts.
6.Please answer all the tables in their entirely
Assuming an income tax rate of 30%, how much is the cumulative effect of this change that should be reported in the income statement for the year ended December 31, 2021?
At the beginning of 2021, Calston Incorporated reports inventory of $9,000. During 2021, the company purchases additional inventory for $25,000. At the end of 2021, the cost of inventory remaining is $8,000. Calculate cost of goods sold for 2021. $
TOPIC: INTERIM FINANCIAL REPORTING Preparation of Interim Income Statement- Prepare an income statement for the second quarter ended June 30, 2021
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below: Palm Realtors Ltd.Adjusted Trial BalanceDecember 31, 2019Cash $ 8,950Accounts receivable 53,530Prepaid rent 2,200Equipment 45,690Accumulated amortization $ 18,930Accounts payable 15,900Interest payable 900Salary payable 3,500Income tax payable 4,700Note payable (due 2025) 19,500Common shares 8,000Retained earnings 29,325Dividends 30,000Commissions 227,480Depreciation expense 6,260Salary expense 140,500Rent expense 26,400Interest expense 1,500Income tax expense 13,205Total $328,235 $328,235 Prepare in good form a classified statement of financial position for Palm Realtors Ltd as at December 31, 2019,
What is the adjusting journal entry on December 31, 2019? Debit Unrealized Holding Gain/Loss (P&L), P200,000; Credit Retained Earnings, P200,000 Debit Financial Asset FVPL, P500,000; Credit Retained Earnings, P500,000 Debit Retained Earnings, P100,000; Credit Financial Asset FVPL, P100,000 Debit Retained Earnings, P300,000; Credit Unrealized Gain (P&L), P300,000 Debit Retained Earnings, P200,000; Credit Unrealized Holding Gain/Loss (P&L), P200,000 None of the choices
Sales Cost of goods sold Accounts receivable Numerator: 2021 $ 446,762 225,881 21,623 Numerator: Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Numerator: 1 1 1 1 1 1 1 2021: 2020: 2019: 2018: 2017: Is the trend percent for Net Sales favorable or unfavorable? 2020 $ 290,105 146,803 16,913 Trend Percent for Net Sales: 2019 $ 232,084 119,092 15,828 2021: 2020: 2019: 2018: 2017: Is the trend percent for Cost of Goods Sold favorable or unfavorable? Trend Percent for Cost of Goods Sold: 1 Denominator: 7 1 1 1 1 1 I 1 Denominator: Trend Percent for Accounts Receivable: Denominator: 1 1 1 1 2021: 2020: 2019: 2018: 2017: Is the trend percent for Accounts Receivable favorable or unfavorable? 2018 $ 167,570 84,885 9,820 = = = = = = = = = = 2017 $ 128,900 64,450 8,804 = Trend percent Trend percent Trend percent % % % % % % % % % % % % %…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS

Prepere s multiple-step income statement for the period ended January 31, 2021.