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Required information [The following information applies to the questions displayed below] On January 1. 2021, the general ledger of ACME Freworks Includes the following account balances: Credit Accounts Cash Accounts Receivable Debit $ 25,900 47,800 Allowance for uUncollectible Accounts Inventory $ 5,000 20,8ee 54,000 19,000 Land Equipnent Accumulated Depreciation Accounts Payable Notes Payable (6x, due April 1, 2022) Connon Stock Retained Earnings 2, 300 29,0 58,000 43,000 29,98e Totals During January 2021, the following transactions occur. January 2 Sold gift cards totaling $9,600. The cards are redeemable for merchandise within one year of the purchase date. 6 Purchase additional inventory on account, $155,00e. January 15 Firework sales for the first half of the month total $143,00e. All of these sales are on account. The cost of the units sold is $77,88e. January 23 Receive $126, 200 fron customers on accounts receivable. January 25 Pay $98,00e to iventory suppliers on accounts payable. January 28 rite off accounts recelvable as uncollectible, $5,60e. January 3e Firework sales for the second half of the month total $151,0ee. Sales include $14,00e for cash and $137,e0e on account. The cost of the units sold is $83,5ee. January 31 Pay cash for monthly salaries, $52,80e.

Required information [The following information applies to the questions displayed below] On January 1. 2021, the general ledger of ACME Freworks Includes the following account balances: Credit Accounts Cash Accounts Receivable Debit $ 25,900 47,800 Allowance for uUncollectible Accounts Inventory $ 5,000 20,8ee 54,000 19,000 Land Equipnent Accumulated Depreciation Accounts Payable Notes Payable (6x, due April 1, 2022) Connon Stock Retained Earnings 2, 300 29,0 58,000 43,000 29,98e Totals During January 2021, the following transactions occur. January 2 Sold gift cards totaling $9,600. The cards are redeemable for merchandise within one year of the purchase date. 6 Purchase additional inventory on account, $155,00e. January 15 Firework sales for the first half of the month total $143,00e. All of these sales are on account. The cost of the units sold is $77,88e. January 23 Receive $126, 200 fron customers on accounts receivable. January 25 Pay $98,00e to iventory suppliers on accounts payable. January 28 rite off accounts recelvable as uncollectible, $5,60e. January 3e Firework sales for the second half of the month total $151,0ee. Sales include $14,00e for cash and $137,e0e on account. The cost of the units sold is $83,5ee. January 31 Pay cash for monthly salaries, $52,80e.

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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Required information [The following information applies to the questions displayed below} On January 1, 2021, the general ledger of ACME Fireworks Includes the following account balances: Accounts Debit $ 25,900 47,8ee Credit Cash Accounts Recelvable Allowance for Uncollectible Accounts Inventory Land Equipment Accunulated Depreciation Accounts Payable Notes Payable (6x, due April 1, 2022) $ 5,000 20,8ee 54,0ee 19,eee 2,300 29,300 58,000 43,880 Connon Stock Retained Earnings 29,900 $167,5e0 Totals $167,500 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,600. The cards are redeemable for nerchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $155,80e. January 15 Firework sales for the first half of the month total $143,80e. All of these sales are on account. The cost of the units sold is $77,880. January 23 Receive $126, 200 from customers on accounts receivable. January 25 Pay $98,00e to inventory suppliers on accounts payable. January 28 rite off accounts receivable as uncollectible, $5,6ee. January 30 Firework sales for the second half of the month total $151,88e. Sales include $14,eee for cash and $137,e0e on account. The cost of the units sold is $83,5ee. January 31 Pay cash for monthly salaries, $52,Bee.
Transcribed Image Text:Required information [The following information applies to the questions displayed below} On January 1, 2021, the general ledger of ACME Fireworks Includes the following account balances: Accounts Debit $ 25,900 47,8ee Credit Cash Accounts Recelvable Allowance for Uncollectible Accounts Inventory Land Equipment Accunulated Depreciation Accounts Payable Notes Payable (6x, due April 1, 2022) $ 5,000 20,8ee 54,0ee 19,eee 2,300 29,300 58,000 43,880 Connon Stock Retained Earnings 29,900 $167,5e0 Totals $167,500 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $9,600. The cards are redeemable for nerchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $155,80e. January 15 Firework sales for the first half of the month total $143,80e. All of these sales are on account. The cost of the units sold is $77,880. January 23 Receive $126, 200 from customers on accounts receivable. January 25 Pay $98,00e to inventory suppliers on accounts payable. January 28 rite off accounts receivable as uncollectible, $5,6ee. January 30 Firework sales for the second half of the month total $151,88e. Sales include $14,eee for cash and $137,e0e on account. The cost of the units sold is $83,5ee. January 31 Pay cash for monthly salaries, $52,Bee.
5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) 8 Answer is not complete. ACME FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities Cash $ 24,900 OAccounts Payable 86,300 O Accounts Receivable Os 196,000 O Deferred Revenue 9,600 X Less: Allowance for Uncollectible 600 8 196,600 Interest Payable Accounts Inventory 14,500 O Income Tax Payable Total Current Assets 236,000 Total Current Liabilities 95,900 Notes Payable 58,000 O Total Liabilities 153,900 Stockholders' Equity 43.000 O 54,000 O Common Stock 19,000 O Retained Earnings Land Equipment 109,800 X Accumulated Depreciation (2,300) X Total Stockholders' Equity 152,800 Total Liabilities and Stockholders' Total Assets |306,700 $ 306,700 Equity
Transcribed Image Text:5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) 8 Answer is not complete. ACME FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities Cash $ 24,900 OAccounts Payable 86,300 O Accounts Receivable Os 196,000 O Deferred Revenue 9,600 X Less: Allowance for Uncollectible 600 8 196,600 Interest Payable Accounts Inventory 14,500 O Income Tax Payable Total Current Assets 236,000 Total Current Liabilities 95,900 Notes Payable 58,000 O Total Liabilities 153,900 Stockholders' Equity 43.000 O 54,000 O Common Stock 19,000 O Retained Earnings Land Equipment 109,800 X Accumulated Depreciation (2,300) X Total Stockholders' Equity 152,800 Total Liabilities and Stockholders' Total Assets |306,700 $ 306,700 Equity
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