Return to question 3 Required information ACME Fireworks Part 3 of 7 Adjusted Trial Balance January 31, 2021 Accounts Debit Credit 15 points Cash $ 25,700 190,000 9,750 Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Deferred Revenue 14,100 50,000 17,000 2,450 85,900 5,400 270 270 13,400 Interest Expense Interest Payable Income Tax Payable Notes Payable Common Stock Retained Earnings 54,000 39,000 31,500 289,400 Sales Revenue Cost of Goods Sold 157,300 OOOOOOO 52,400 Salaries Expense Depreciation Expense Bad Debt Expense Income Tax Expense 550 10,350 13,400 $ 531,070 Totals $ 531,070 Credit Debit $ 25,500 47,000 $ 4,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 20,400 50,000 17,000 1,900 28,900 54,000 39,000 31,500 $159,900 $159,900 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,800. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $151,000. January 15 Firework sales for the first half of the month total $139,000. All of these sales are on account. The cost of the units sold is $75,800. January 23 Receive $125,800 from customers on accounts receivable. January 25 Pay $94,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,200. January 30 Firework sales for the second half of the month total $147,000. Sales include $12,000 for cash and $135,000 on account. The cost of the units sold is $81,500. January 31 Pav cash for monthly salaries. $52.400. is $81,500. January 31 Pay cash for monthly salaries, $52,400. 4. Prepare a multiple-step income statement for the period ended January 31, 2021. ACME FIREWORKS Income Statement OOO 132,100 For the year ended January 31, 2021 Sales Revenue $ 289,400 Cost of Goods Sold (157,300) Gross Profit $ Accounts Receivable $ 0 Salaries Expense 52,400 Depreciation Expense 550 Bad Debt Expense 10,350 Interest Payable 270 Total operating expenses Operating Income Income Tax Payable x Service Revenue x Warranty Liability x $ OOO OOO 63,570 68,530 (13,400) X 55,130 55,130