On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances:...
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On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $25,100 Accounts Receivable 44,500 Allowance for Uncollectible Accounts $3,500 Inventory 46,000 Land 85,600 Accounts Payable 27,200 Notes Payable (9%, due in 3 years) 46,000 Common Stock 72,000 Retained Earnings Totals $201,200 52,500 $201,200 The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,450 units for $158,050 on account ($109 each). January 8 Purchase 1,550 units for $176,700 on account ($114 each). January 12 Purchase 1,650 units for $196,350 on account ($119 each). January 15 Return 180 of the units purchased on January 12 because of defects. January 19 Sell 4,800 units on account for $720,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $705,000 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,500. January 31 Pay cash for salaries during January, $135,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,530 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,900. Exercise 6-21 (Algo) Part 1 Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Date January 03 Inventory Accounts Payable Answer is complete but not entirely correct. General Journal Debit Credit 158,050 158,050 ( 2 January 08 Inventory Accounts Payable 176,700 176,700 3 January 12 Inventory 196,350 Accounts Payable 196,350 4 January 15 Accounts Payable Inventory 21,420 21,420 5 January 19 Accounts Receivable 720,000 Sales Revenue 720,000 6 January 19 Cost of Goods Sold 149,320 Inventory 149,320 On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $25,100 Accounts Receivable 44,500 Allowance for Uncollectible Accounts $3,500 Inventory 46,000 Land 85,600 Accounts Payable 27,200 Notes Payable (9%, due in 3 years) 46,000 Common Stock 72,000 Retained Earnings Totals $201,200 52,500 $201,200 The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,450 units for $158,050 on account ($109 each). January 8 Purchase 1,550 units for $176,700 on account ($114 each). January 12 Purchase 1,650 units for $196,350 on account ($119 each). January 15 Return 180 of the units purchased on January 12 because of defects. January 19 Sell 4,800 units on account for $720,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $705,000 from customers on accounts receivable. January 24 Pay $500,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,500. January 31 Pay cash for salaries during January, $135,000. The following information is available on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,530 for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January. Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,900. Exercise 6-21 (Algo) Part 1 Required: 1. Record each of the transactions listed above, assuming a FIFO perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Date January 03 Inventory Accounts Payable Answer is complete but not entirely correct. General Journal Debit Credit 158,050 158,050 ( 2 January 08 Inventory Accounts Payable 176,700 176,700 3 January 12 Inventory 196,350 Accounts Payable 196,350 4 January 15 Accounts Payable Inventory 21,420 21,420 5 January 19 Accounts Receivable 720,000 Sales Revenue 720,000 6 January 19 Cost of Goods Sold 149,320 Inventory 149,320
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