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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
5.
![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
Total Operating Expenses
Debit
$ 25,100
46,200
$
20,000
46,000
15,000
0
$ 152,300
4. Prepare a multiple-step income statement for the period ended January 31, 2024.
ACME FIREWORKS
Income Statement
For the Month Ended January 31, 2024
Credit
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.
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 cash
and $132,000 on account. The cost of the units sold is $79,500.
January 31 Pay cash for monthly salaries, $52,000.
$4,200
1,500
28,500
50,000
35,000
33,100
$ 152,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cede60-d840-49cc-884f-d4f076bc4b08%2F19e92b72-2691-4e2b-b33c-c63152d2850b%2Ff8uy75_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Total Operating Expenses
Debit
$ 25,100
46,200
$
20,000
46,000
15,000
0
$ 152,300
4. Prepare a multiple-step income statement for the period ended January 31, 2024.
ACME FIREWORKS
Income Statement
For the Month Ended January 31, 2024
Credit
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.
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 cash
and $132,000 on account. The cost of the units sold is $79,500.
January 31 Pay cash for monthly salaries, $52,000.
$4,200
1,500
28,500
50,000
35,000
33,100
$ 152,300
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