On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts
Question:
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 26,900 | ||||
Accounts Receivable | 49,800 | |||||
Allowance for Uncollectible Accounts | $ | 6,000 | ||||
Inventory | 21,800 | |||||
Land | 64,000 | |||||
Equipment | 24,000 | |||||
Accumulated Depreciation | 3,300 | |||||
Accounts Payable | 30,300 | |||||
Notes Payable (6%, due April 1, 2019) | 68,000 | |||||
Common Stock | 53,000 | |||||
Retained Earnings | 25,900 | |||||
Totals | $ | 186,500 | $ | 186,500 | ||
During January 2018, the following transactions occur:
January 2. Sold gift cards totaling $11,600. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $165,000.
January 15. Firework sales for the first half of the month total $153,000. All of these sales are on account. The cost of the units sold is $82,800.
January 23. Receive $127,200 from customers on accounts receivable.
January 25. Pay $108,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $6,600.
January 30. Firework sales for the second half of the month total $161,000. Sales include $18,000 for cash and $143,000 on account. The cost of the units sold is $88,500.
January 31. Pay cash for monthly salaries, $53,800.
1.
value:
15.00 points
Required information
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.)
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann