[The following information applies to the questions displaye On January 1, 2021, the general ledger of ACME Fireworks account balances: Credit Debit $ 25,400 46,800 Accounts Cash Accounts Receivable Allowance for Uncollectible $ 4,500 Accounts Inventory Land 20,300 49,000
[The following information applies to the questions displaye On January 1, 2021, the general ledger of ACME Fireworks account balances: Credit Debit $ 25,400 46,800 Accounts Cash Accounts Receivable Allowance for Uncollectible $ 4,500 Accounts Inventory Land 20,300 49,000
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
Credit
$ 25,400
46,800
Cash
Accounts Receivable
Allowance for Uncollectible
$ 4,500
Accounts
20,300
49,000
16,500
Inventory
Land
Equipment
Accumulated Depreciation
Accounts Payable
Notes Payable (6%, due April
1, 2022)
Common Stock
1,800
28,800
53,000
38,000
Retained Earnings
31,900
$158,000 $158,000
Totals
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $8,600. The cards are redeemable for
merchandise within one year of the purchase date.
January 6 Purchase additional inventory on account, $150,000.
January 15 Firework sales for the first half of the month total $138,000.
All of these sales are on account. The cost of the units sold
is $75,300.
January 23 Receive $125,700 from customers on accounts receivable.
January 25 Pay $93,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,100.
January 30 Firework sales for the second half of the month total
$146,000. Sales include $18,000 for cash and $128,000 on
account. The cost of the units sold is $81,000.
January 31 Pay cash for monthly salaries, $52,300.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0645e147-29a8-4628-8f33-7f2f84147d93%2F5edf7f96-67e2-4c6a-8eb5-69f28701bdca%2Ftyxhxqc_processed.png&w=3840&q=75)
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
Credit
$ 25,400
46,800
Cash
Accounts Receivable
Allowance for Uncollectible
$ 4,500
Accounts
20,300
49,000
16,500
Inventory
Land
Equipment
Accumulated Depreciation
Accounts Payable
Notes Payable (6%, due April
1, 2022)
Common Stock
1,800
28,800
53,000
38,000
Retained Earnings
31,900
$158,000 $158,000
Totals
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $8,600. The cards are redeemable for
merchandise within one year of the purchase date.
January 6 Purchase additional inventory on account, $150,000.
January 15 Firework sales for the first half of the month total $138,000.
All of these sales are on account. The cost of the units sold
is $75,300.
January 23 Receive $125,700 from customers on accounts receivable.
January 25 Pay $93,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,100.
January 30 Firework sales for the second half of the month total
$146,000. Sales include $18,000 for cash and $128,000 on
account. The cost of the units sold is $81,000.
January 31 Pay cash for monthly salaries, $52,300.
Transcribed Image Text:4. Prepare a multiple-step income statement for the period ended January 31, 2021.
O Answer is not complete.
ACME FIREWORKS
Income Statement
For the year ended January 31, 2021
Sales Revenue
S 287,300
Cost of Goods Sold
156,300 O
Gross Profit
131,000
Interest Expense
265
Depreciation Expense
550 O
Salaries Expense
52,300
Bad Debt Expense
13,200 V
Income Tax Expense
13,300 3
Total operating expenses
Operating Income
79,615
51,385
Interest Revenue
Income Before Taxes
51,385
Net Income
IS
51,385
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