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 Cash $ 27,100 Accounts Receivable 50,200 Allowance for Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000 Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable 30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock 55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $167,000. January 15 Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the units sold is $83,800. January 23 Receive $127,400 from customers on accounts receivable. January 25 Pay $110,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,800 January 30 Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000 on account. The cost of the units sold is $89,500. January 31 Pay cash for monthly salaries, $54,000. 4. Prepare a multiple-step income statement for the period ended January 31, 2021.
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 Cash $ 27,100 Accounts Receivable 50,200 Allowance for Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000 Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable 30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock 55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $167,000. January 15 Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the units sold is $83,800. January 23 Receive $127,400 from customers on accounts receivable. January 25 Pay $110,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $6,800 January 30 Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000 on account. The cost of the units sold is $89,500. January 31 Pay cash for monthly salaries, $54,000. 4. Prepare a multiple-step income statement for the period ended January 31, 2021.
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 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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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 Cash $ 27,100 Accounts
Receivable 50,200 Allowance for Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000 Equipment 25,000
Accumulated Depreciation 3,500 Accounts Payable 30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock
55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase
date.
January 6 Purchase additional inventory on account, $167,000.
January 15 Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the
units sold is $83,800.
January 23 Receive $127,400 from customers on accounts receivable.
January 25 Pay $110,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $6,800
January 30 Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000
on account.
The cost of the units sold is $89,500. January 31 Pay cash for monthly salaries, $54,000.
4. Prepare a multiple-step income statement for the period ended January 31, 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdec48aa-2889-4c0d-81a8-e48e919b4861%2Fc4d0e498-a1a8-4e76-b216-a182dddd4bbb%2F6txumlu_processed.jpeg&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 Cash $ 27,100 Accounts
Receivable 50,200 Allowance for Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000 Equipment 25,000
Accumulated Depreciation 3,500 Accounts Payable 30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock
55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase
date.
January 6 Purchase additional inventory on account, $167,000.
January 15 Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the
units sold is $83,800.
January 23 Receive $127,400 from customers on accounts receivable.
January 25 Pay $110,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $6,800
January 30 Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000
on account.
The cost of the units sold is $89,500. January 31 Pay cash for monthly salaries, $54,000.
4. Prepare a multiple-step income statement for the period ended January 31, 2021.
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