On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,100 Accounts Receivable 46,200 Allowance for Uncollectible...

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Accounting

On January 1, 2018, the general ledger of ACME Fireworksincludes the following account balances:

  Accounts Debit Credit
  Cash $ 25,100
  AccountsReceivable 46,200
  Allowance forUncollectible Accounts $ 4,200
  Inventory 20,000
  Land 46,000
  Equipment 15,000
  AccumulatedDepreciation 1,500
  AccountsPayable 28,500
  Notes Payable (6%,due April 1, 2019) 50,000
  Common Stock 35,000
  RetainedEarnings 33,100
       Totals $ 152,300 $ 152,300

During January 2018, the following transactions occur:

January 2. Sold gift cards totaling $8,000. The cards areredeemable for merchandise within one year of the purchasedate.
January 6. Purchase additional inventory on account,$147,000.
January 15. Firework sales for the first half of the month total$135,000. All of these sales are on account. The cost of the unitssold is $73,800.
January 23. Receive $125,400 from customers on accountsreceivable.
January 25. Pay $90,000 to inventory suppliers on accountspayable.
January 28. Write off accounts receivable as uncollectible,$4,800.
January 30. Firework sales for the second half of the month total$143,000. Sales include $11,000 for cash and $132,000 on account.The cost of the units sold is $79,500.
5. Prepare a classified balance sheet as ofJanuary 31, 2018.
6. Record closing entries.

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Date	General Journal	Debit	Credit

January 02	Cash	8000
	Deferred revenue		8000

January 06	Inventory	147000
	Accounts payable		147000

January 15	Accounts Receivable	135000
	Sales revenue		135000

January 15	Cost of goods sold	73800
	Inventory		73800

January 23	Cash	125400
	Accounts Receivable		125400

January 25	Accounts payable	90000
	Cash		90000

January 28	Allowances for uncollectible accounts	4800
	Accounts receivable		4800

January 15	Cash	11000
	Accounts Receivable	132000
	Sales revenue		143000

January 15	Cost of goods sold	79500
	Inventory		79500

Assets	Amount	Liability and equity shareholders fund	Amount

Cash	79500	Accumulated Depreciation	1500
Accounts Receivable	183000	Accounts Payable	85500
Allowance for Uncollectible Accounts	600	Deferrec revenue	8000
Inventory	13700	Notes Payable (6%, due April 1, 2019)	50000
Land	46000	Common Stock	35000
Equipment	15000	Retained Earnings	157800

	337800		337800

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Transcribed Image Text

On January 1, 2018, the general ledger of ACME Fireworksincludes the following account balances: AccountsDebitCredit Cash$25,100 AccountsReceivable46,200 Allowance forUncollectible Accounts$4,200 Inventory20,000 Land46,000 Equipment15,000 AccumulatedDepreciation1,500 AccountsPayable28,500 Notes Payable (6%,due April 1, 2019)50,000 Common Stock35,000 RetainedEarnings33,100 Totals$152,300$152,300 During January 2018, the following transactions occur:January 2. Sold gift cards totaling $8,000. The cards areredeemable for merchandise within one year of the purchasedate.January 6. Purchase additional inventory on account,$147,000.January 15. Firework sales for the first half of the month total$135,000. All of these sales are on account. The cost of the unitssold is $73,800.January 23. Receive $125,400 from customers on accountsreceivable.January 25. Pay $90,000 to inventory suppliers on accountspayable.January 28. Write off accounts receivable as uncollectible,$4,800.January 30. Firework sales for the second half of the month total$143,000. Sales include $11,000 for cash and $132,000 on account.The cost of the units sold is $79,500.5. Prepare a classified balance sheet as ofJanuary 31, 2018.6. Record closing entries.

Accounts	Debit		Credit
Cash	$	25,100
AccountsReceivable		46,200
Allowance forUncollectible Accounts			$	4,200
Inventory		20,000
Land		46,000
Equipment		15,000
AccumulatedDepreciation				1,500
AccountsPayable				28,500
Notes Payable (6%,due April 1, 2019)				50,000
Common Stock				35,000
RetainedEarnings				33,100

Totals	$	152,300	$	152,300