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 Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (12%, due in 3 years) Common Stock Retained Earnings Totals Debit $24,100 42,000 41,000 78,100 $2,500 29,700 41,000 67,000 $185,200 45,000 $185,200 The $41,000 beginning balance of inventory consists of 410 units, each costing $100. During January 2024, Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 2,000 units for $218,000 on account ($109 each). January Purchase 2,100 units for $239,400 on account ($114 each). January 12 Purchase 2,200 units for $261,800 on account ($119 each). January 15 Return 155 of the units purchased on January 12 because of defects. January 19 Sell 6,400 units on account for $960,000 The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $950,000 from customers on accounts receivable. January 24 Pay $680,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,000. January 31 Pay cash for salaries during January, $125,000. 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 $3,785. 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 $13,400. 1. Record each of the transactions listed above in the 'General Journal" tab (these are shown as items 1 to 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31. In the 'General Journal' tab (these are shown as items 11 to 14). 3. Review the adjusted Trial Balance as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the Income Statement tab. 5. Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16). 7. Using the information from the requirements above, complete the 'Analysis" tab. On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (12%, due in 3 years) Common Stock Retained Earnings Totals Debit $24,100 42,000 41,000 78,100 $2,500 29,700 41,000 67,000 $185,200 45,000 $185,200 The $41,000 beginning balance of inventory consists of 410 units, each costing $100. During January 2024, Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 2,000 units for $218,000 on account ($109 each). January Purchase 2,100 units for $239,400 on account ($114 each). January 12 Purchase 2,200 units for $261,800 on account ($119 each). January 15 Return 155 of the units purchased on January 12 because of defects. January 19 Sell 6,400 units on account for $960,000 The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $950,000 from customers on accounts receivable. January 24 Pay $680,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,000. January 31 Pay cash for salaries during January, $125,000. 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 $3,785. 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 $13,400. 1. Record each of the transactions listed above in the 'General Journal" tab (these are shown as items 1 to 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31. In the 'General Journal' tab (these are shown as items 11 to 14). 3. Review the adjusted Trial Balance as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the Income Statement tab. 5. Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16). 7. Using the information from the requirements above, complete the 'Analysis" tab.

Answer rating: 100% (QA)

ANSWER 1 Record each of the transactions listed above in the General Journal tab these are shown as items 1 to 10 assuming a FIFO perpetual inventory system Item 1 DateJan 3 DebitAccounts Payable21800... View the full answer