Required information [The following information applies to the questions displayed below.] 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 $ 25,100 46,200 20,000 46,000 15,000 $ 152,300 Credit $4,200 1,500 28,500 50,000 35,000 33,100 $ 152,300 During January 2024, the following transactions occur. January 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. January 6 Purchase additional inventory on account, $147,00. ACME uses the perpetual inventory system. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 for cashi and $132,000 on account. The cost of the units sold is $79,500. January 31 Pay cash for monthly salaries, $52,000.
Required information [The following information applies to the questions displayed below.] 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 $ 25,100 46,200 20,000 46,000 15,000 $ 152,300 Credit $4,200 1,500 28,500 50,000 35,000 33,100 $ 152,300 During January 2024, the following transactions occur. January 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. January 6 Purchase additional inventory on account, $147,00. ACME uses the perpetual inventory system. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 for cashi and $132,000 on account. The cost of the units sold is $79,500. January 31 Pay cash for monthly salaries, $52,000.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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