On January 1, 2018, the general ledger of ACME Fireworksincludes the following account balances:
Accounts Debit Credit Cash $ 25,100 AccountsReceivable 46,200 Allowance forUncollectible Accounts $ 4,200 Inventory 20,000 Land 46,000 Equipment 15,000 AccumulatedDepreciation 1,500 AccountsPayable 28,500 Notes Payable (6%,due April 1, 2019) 50,000 Common Stock 35,000 RetainedEarnings 33,100 Totals $ 152,300 $ 152,300
During January 2018, the following transactions occur:
January 2. Sold gift cards totaling $8,000. The cards areredeemable for merchandise within one year of the purchasedate.
January 6. Purchase additional inventory on account,$147,000.
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 unitssold is $73,800.
January 23. Receive $125,400 from customers on accountsreceivable.
January 25. Pay $90,000 to inventory suppliers on accountspayable.
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.
5. Prepare a classified balance sheet as ofJanuary 31, 2018.
6. Record closing entries.
On January 1, 2018, the general ledger of ACME Fireworksincludes the following account balances:
| Accounts | Debit | Credit | ||||
| Cash | $ | 25,100 | ||||
| AccountsReceivable | 46,200 | |||||
| Allowance forUncollectible Accounts | $ | 4,200 | ||||
| Inventory | 20,000 | |||||
| Land | 46,000 | |||||
| Equipment | 15,000 | |||||
| AccumulatedDepreciation | 1,500 | |||||
| AccountsPayable | 28,500 | |||||
| Notes Payable (6%,due April 1, 2019) | 50,000 | |||||
| Common Stock | 35,000 | |||||
| RetainedEarnings | 33,100 | |||||
| Totals | $ | 152,300 | $ | 152,300 | ||
During January 2018, the following transactions occur:
January 2. Sold gift cards totaling $8,000. The cards areredeemable for merchandise within one year of the purchasedate.
January 6. Purchase additional inventory on account,$147,000.
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 unitssold is $73,800.
January 23. Receive $125,400 from customers on accountsreceivable.
January 25. Pay $90,000 to inventory suppliers on accountspayable.
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.
5. Prepare a classified balance sheet as ofJanuary 31, 2018.
6. Record closing entries.
Related questions
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:
| Accounts | Debit | Credit | ||||
| Cash | $ | 25,100 | ||||
| Accounts Receivable | 46,200 | |||||
| Allowance for Uncollectible Accounts | $ | 4,200 | ||||
| Inventory | 20,000 | |||||
| Land | 46,000 | |||||
| Equipment | 15,000 | |||||
| Accumulated Depreciation | 1,500 | |||||
| Accounts Payable | 28,500 | |||||
| Notes Payable (6%, due April 1, 2019) | 50,000 | |||||
| Common Stock | 35,000 | |||||
| Retained Earnings | 33,100 | |||||
| Totals | $ | 152,300 | $ | 152,300 | ||
During January 2018, 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, $147,000.
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.
1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $3,000 and a two-year service life.
2. At the end of January, $11,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
3. Accrued interest expense on notes payable for January.
4. Accrued income taxes at the end of January are $13,000.
5. By the end of January, $3,000 of the gift cards sold on January 2 have been redeemed.
Need journal entries for the following 5.
