Prepare a classified balance sheet as of January 31, 2018. (Enter the Asset Accounts in order of liq
Prepare a classified balance sheet as of January 31, 2018. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) based on the following information:
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:
Accounts Debit Credit Cash $ 25,900 Accounts Receivable 47,800 Allowance for Uncollectible Accounts $ 5,000 Inventory 20,800 Land 54,000 Equipment 19,000 Accumulated Depreciation 2,300 Accounts Payable 29,300 Notes Payable (6%, due April 1, 2019) 58,000 Common Stock 43,000 Retained Earnings 29,900 Totals $ 167,500 $ 167,500
During January 2018, the following transactions occur:
January 2. Sold gift cards totaling $9,600. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $155,000.
January 15. Firework sales for the first half of the month total $143,000. All of these sales are on account. The cost of the units sold is $77,800.
January 23. Receive $126,200 from customers on accounts receivable.
January 25. Pay $98,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $5,600.
January 30. Firework sales for the second half of the month total $151,000. Sales include $14,000 for cash and $137,000 on account. The cost of the units sold is $83,500.
January 31. Pay cash for monthly salaries, $52,800.
1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) General Journal Credit No 1 Date January 02 Debit 9,600 Cash Deferred revenue 9,600 2 January 06 155,000 Inventory Accounts payable 155,000 January 15 143,000 Accounts receivable Sales revenue 143,000 January 15 77,800 Cost of goods sold Inventory 77,800 5 January 23 Janual 126,200 Cash Accounts receivable 126,200 January 25 98,000 Accounts payable Cash 98,000 7 January 28 5,600 Allowance for uncollectible accounts Accounts receivable 5.600 8 January 30 $ Accounts receivable Cash Sales revenue 137,000 14,000 151,000 9 January 30 $ 83,500 Cost of goods sold Inventory 83,500 10 January 31 $ 52,800 Salaries expense Cash 52,800 2. value: 15.00 points Required information 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 $4,600 and a two-year service life. 2. The company estimates future uncollectible accounts. The company determines $19,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) 3. Accrued interest expense on notes payable for January 1. Accrued income taxes at the end of January are $13.800. 5. By the end of January, $3,800 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) View transaction list View journal entry worksheet Credit No 1 Date January 31 General Journal Depreciation expense Accumulated depreciation Debit 600 600 2 January 31 15,150 Bad debt expense Allowance for uncollectible accounts 15,150 3 January 31 290 Interest expense Interest payable 290 January 31 13,800 Income tax expense Income tax payable 13.800 January 31 $ 3.800 Deferred revenue Sales revenue 3,800 value: 15.00 points 3. Prepare an adjusted trial balance as of January 31, 2018. Credit 14,550 ACME Fireworks Adjusted Trial Balance January 31, 2018 Accounts Debit Cash 1 $ 24,900 Accounts receivable 196,000 Allowance for uncollectible accounts Inventory 14,500 Land 54,000 Equipment 19,000 Accumulated depreciation Accounts payable Notes payable Common stock Retained earnings Sales revenue Cost of Goods Sold 161,300 Salaries expense 52,800 Accumulated depreciation Bad debt expense 15,150 Interest payable Interest expense 290 Income tax expense expense 13,800 Deferred revenue Income tax payable Totals $ 552,340 2,900 86,300 58,000 43,000 29,900 297,800 600 290 5,800 13,800 552,340 $