Required information [The following information applies to the questions displayed below.] On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land པ ཛ ༢ བ — ཆ ༢ ༥ ་ Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals During January 2024, the following transactions occur: Debit $ 12,700 Credit 37,000 $ 3,300 153,500 82,300 135,000 11,100 34,200 215,000 156,900 $ 420,500 $ 420,500 January 1 Borrow $115,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,223 are required at the end of each month for 60 months. Receive $32,500 from customers on accounts receivable. January 4 January 10 Pay cash on accounts payable, $26,000. January 15 Pay cash for salaries, $30,400. January 30 Firework sales for the month total $210,000. The cost of the units sold is $120,000. January 31 Pay the first monthly installment of $2,223 related to the $115,000 borrowed on January 1. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round intermediate calculations.)
Required information [The following information applies to the questions displayed below.] On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land པ ཛ ༢ བ — ཆ ༢ ༥ ་ Buildings Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals During January 2024, the following transactions occur: Debit $ 12,700 Credit 37,000 $ 3,300 153,500 82,300 135,000 11,100 34,200 215,000 156,900 $ 420,500 $ 420,500 January 1 Borrow $115,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,223 are required at the end of each month for 60 months. Receive $32,500 from customers on accounts receivable. January 4 January 10 Pay cash on accounts payable, $26,000. January 15 Pay cash for salaries, $30,400. January 30 Firework sales for the month total $210,000. The cost of the units sold is $120,000. January 31 Pay the first monthly installment of $2,223 related to the $115,000 borrowed on January 1. 4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round intermediate calculations.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14P: Analyzing Accounts Receivable Upham Companys June 30, 2019, balance sheet included the following...
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![Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, the general ledger of Freedom Fireworks includes the following
account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
པ ཛ ༢ བ — ཆ ༢ ༥ ་
Buildings
Accumulated Depreciation
Accounts Payable
Common Stock
Retained Earnings
Totals
During January 2024, the following transactions occur:
Debit
$ 12,700
Credit
37,000
$ 3,300
153,500
82,300
135,000
11,100
34,200
215,000
156,900
$ 420,500
$ 420,500
January 1
Borrow $115,000 from Captive Credit Corporation. The installment note
bears interest at 6% annually and matures in 5 years. Payments of
$2,223 are required at the end of each month for 60 months.
Receive $32,500 from customers on accounts receivable.
January 4
January 10 Pay cash on accounts payable, $26,000.
January 15 Pay cash for salaries, $30,400.
January 30 Firework sales for the month total $210,000. The cost of the units sold
is $120,000.
January 31 Pay the first monthly installment of $2,223 related to the $115,000
borrowed on January 1.
4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round
intermediate calculations.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c55694c-7810-422c-9667-2090bbf289ef%2F81360d2a-3648-4fb5-8f3f-66fa64cdee1a%2F0i6zgm_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 Freedom Fireworks includes the following
account balances:
Accounts
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
པ ཛ ༢ བ — ཆ ༢ ༥ ་
Buildings
Accumulated Depreciation
Accounts Payable
Common Stock
Retained Earnings
Totals
During January 2024, the following transactions occur:
Debit
$ 12,700
Credit
37,000
$ 3,300
153,500
82,300
135,000
11,100
34,200
215,000
156,900
$ 420,500
$ 420,500
January 1
Borrow $115,000 from Captive Credit Corporation. The installment note
bears interest at 6% annually and matures in 5 years. Payments of
$2,223 are required at the end of each month for 60 months.
Receive $32,500 from customers on accounts receivable.
January 4
January 10 Pay cash on accounts payable, $26,000.
January 15 Pay cash for salaries, $30,400.
January 30 Firework sales for the month total $210,000. The cost of the units sold
is $120,000.
January 31 Pay the first monthly installment of $2,223 related to the $115,000
borrowed on January 1.
4. Prepare a multiple-step income statement for the period ended January 31, 2024. (Do not round
intermediate calculations.)
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