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On January $1,2024,$ the general ledger of Big Blast Fireworks includes the following account balances:

The $\backslash (\backslash$$ $45,000\backslash )$ beginning balance of inventory consists of $450$ units, each costing $\backslash (\backslash$$ $100\backslash ).$ During January $2024.$ Big Blast Fireworks had the following inventory transactions:

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January $3$ Purchase $1,350$ units for $$145,800$ on account $($$$108$ each$).$

January $8$ Purchase $1,450$ units for $$163,850$ on account $(\}$$$113\backslash$mathrm$\{$ each$).$

January $12$ Purchase $1,550$ units for $$182,900$ on account $($$$118$ each$).$

January $15$ Return $175$ of the units purchased on January $12$ because of defects.

January $19$ Sell $4,500$ units on account for $$675,000$ The cost of the units sold is determined using a FIFO perpetual inventory

system.

January $22$ Receive $$$61,00$ from customers on accounts receivable.

January $24$ Pay $$440,000$ to inventory suppliers on accounts payable.

January $27$ Write off accounts receivable as uncollectible, $$2,400.$

January $31$ Pay cash for salaries during January, $$134,009.$

$```$

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 $\backslash (\backslash$$ $100\backslash )$ 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 $\backslash (\backslash$$ $3\mathrm{.}255\backslash ).$ 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 $\backslash (\backslash$$ $13\mathrm{.}800\backslash ).$

$1.$ 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.

Prepare the journal entries for transactions. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

View journal entry worksheet Requirement

General

General

Trial Balance

Income

Balance Sheet

Analysis

Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.

Unadjusted

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Cash $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & January $01$ & & & $24,900\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Allowance for Uncollectible Accounts

Accounts Receivable

$\backslash$begin$\{$tabular$\}\{|$r$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Allowance for Uncollectible Accounts $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & & & & $3,300\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Inventory $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & January $01$ & & & $45,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Land $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & January $01$ & & & $84,100\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Accounts Payable $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & & & & $27,700\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Notes Payable $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & & & & $45,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$c$|\}\{$ Common Stock $\}\backslash \backslash$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & & & & $71,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Retained Earnings

$\backslash$begin$\{$tabular$\}\{|$r$|$l$|$l$|$l$|$r$|\}$

$\backslash$hline No$.$ & Date & Debit & Credit & Balance $\backslash \backslash$

$\backslash$hline & & & & $51,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash [$

$1$

$\backslash ]$

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