Required information

Exercise 8-18 Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6)

Skip to question

[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	$	26,700
Accounts Receivable		49,400
Allowance for Uncollectible Accounts					$	5,800
Inventory		21,600
Land		62,000
Equipment		23,000
Accumulated Depreciation						3,100
Accounts Payable						30,100
Notes Payable (6%, due April 1, 2022)						66,000
Common Stock						51,000
Retained Earnings						26,700
Totals	$	182,700			$	182,700

During January 2021, the following transactions occur:

January		2		Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date.
January		6		Purchase additional inventory on account, $163,000.
January		15		Firework sales for the first half of the month total $151,000. All of these sales are on account. The cost of the units sold is $81,800.
January		23		Receive $127,000 from customers on accounts receivable.
January		25		Pay $106,000 to inventory suppliers on accounts payable.
January		28		Write off accounts receivable as uncollectible, $6,400.
January		30		Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500.
January		31		Pay cash for monthly salaries, $53,600.

Exercise 8-18 Part 4

4. Prepare a multiple-step income statement for the period ended January 31, 2021.

PLS FILL OUT THE CHART

4. Prepare a multiple-step income statement for the period ended January 31, 2021. X Answer is not complete. ACME FIREWORKS Income Statement For the year ended January 31, 2021 Sales Revenue $ 182,700 X Cost of Goods Sold 169,300 Gross Profit $ 13,400 $ 53,600 Salaries Expense Depreciation Expense Bad Debt Expense 750 16,140 Total operating expenses Operating Income Interest Expense 70,490 (57,090) 330 Income Before Taxes (57,420) Income Tax Expense Net Income $ (57,420) 4. Prepare a multiple-step income statement for the period ended January 31, 2021. X Answer is not complete. ACME FIREWORKS Income Statement For the year ended January 31, 2021 Sales Revenue $ 182,700 X Cost of Goods Sold 169,300 Gross Profit $ 13,400 $ 53,600 Salaries Expense Depreciation Expense Bad Debt Expense 750 16,140 Total operating expenses Operating Income Interest Expense 70,490 (57,090) 330 Income Before Taxes (57,420) Income Tax Expense Net Income $ (57,420)