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 Cash Accounts Receivable Allowance for Uncollect ible Accounts Inventory Debit $ 26,300 48,600 Credit $ 5,400 21,200 58,000 21,000 Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings 2,700 29,700 62,000 47,000 28,300 $175, 100 $175,100 Totals During January 2021, the following transactions occur: January 2 Sold gift cards totaling $10,400. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase addit ional inventory on account, $159,000. January 15 Firework sales for the first half of the month total $147,000. ALl of these sales are on account. The cost of the units sold is $79,800. January 23 Receive $126,600 from customers on accounts receivable. January 25 Pay $102,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,000. January 30 Firework sales for the second half of the month total $155, 000. Sales include $11,000 for cash and $144,000 on account. The cost of the units sold is s85, 500. January 31 Pay cash for monthly salaries, $53,200. 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash Accounts Receivable 140,600 Inventory 21,200 Land 58,000 Equipment 21,000 Accumulated Depreciation 700 Accounts Payable Notes Payable 62,000 Common Stock 47,000 28,300 Retained Earnings Allowance for Uncollectible Accounts 10,400 Sales Revenue Cost of Goods Sold Bad Debt Expense Salaries Expense 53,200 Totals 240,800 %24 203,600

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
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
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Debit
$ 26,300
48,600
Credit
$ 5,400
21,200
58,000
21,000
Equipment
Accumulated Depreciation
Accounts Payable
Notes Payable (64, due April 1, 2022)
Common Stock
Retained Earnings
2,700
29,700
62,000
47,000
28,300
$175,100
Totals
$175, 100
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $10,400. The cards are redeemable for merchandise within one year of the
purchase date.
January 6 Purchase additional inventory on account, $159, e00.
January 15 Firework sales for the first half of the month total $147,000. ALl of these sales are on account.
The cost of the units sold is $79,8ee.
January 23 Receive $126,600 from customers on accounts receivable.
January 25 Pay $182,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $6,000.
January 30 Firework sales for the second half of the month total $155, 000. Sales include $11,000 for cash and
$144,000 on account. The cost of the units sold is $85, 500.
January 31 Pay cash for monthly salaries, $53,200.
3. Prepare an adjusted trial balance as of January 31, 2021.
ACME Fireworks
Adjusted Trial Balance
January 31, 2021
Accounts
Debit
Credit
Cash
Accounts Receivable
140,600
Inventory
21,200
Land
58,000
Equipment
21,000
Accumulated Depreciation
2700
Accounts Payable
Notes Payable
62,000
Common Stock
47,000
Retained Eamings
28,300
Allowance for Uncollectible Accounts
10,400
Sales Revenue
Cost of Goods Sold
Bad Debt Expense
Salaries Expense
53,200
Totals
240,800 S 203,600
www
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 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Debit $ 26,300 48,600 Credit $ 5,400 21,200 58,000 21,000 Equipment Accumulated Depreciation Accounts Payable Notes Payable (64, due April 1, 2022) Common Stock Retained Earnings 2,700 29,700 62,000 47,000 28,300 $175,100 Totals $175, 100 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $10,400. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $159, e00. January 15 Firework sales for the first half of the month total $147,000. ALl of these sales are on account. The cost of the units sold is $79,8ee. January 23 Receive $126,600 from customers on accounts receivable. January 25 Pay $182,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,000. January 30 Firework sales for the second half of the month total $155, 000. Sales include $11,000 for cash and $144,000 on account. The cost of the units sold is $85, 500. January 31 Pay cash for monthly salaries, $53,200. 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash Accounts Receivable 140,600 Inventory 21,200 Land 58,000 Equipment 21,000 Accumulated Depreciation 2700 Accounts Payable Notes Payable 62,000 Common Stock 47,000 Retained Eamings 28,300 Allowance for Uncollectible Accounts 10,400 Sales Revenue Cost of Goods Sold Bad Debt Expense Salaries Expense 53,200 Totals 240,800 S 203,600 www
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education