90.2K

Verified Solution

Link Copied!

PLEASE NEED HELP WILL GIVE THUMBS UP 2. Record adjusting entries on January 31 for the above transactions. (If no entry is requlred for a transaction/event, select "No Journal Entry Required" In the first account fleld.) \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ BIG BLAST FIREWORKS } \\ \hline \multicolumn{3}{|c|}{ Adjusted Trial Balance } \\ \hline \multicolumn{3}{|c|}{ January 31, 2024} \\ \hline Accounts & Debit & Credit \\ \hline \multicolumn{3}{|l|}{ Cash } \\ \hline \multicolumn{3}{|c|}{ Accounts receivable } \\ \hline \multicolumn{3}{|c|}{ Allowance for uncollectible accounts } \\ \hline \multicolumn{3}{|l|}{ Inventory } \\ \hline \multicolumn{3}{|l|}{ Land } \\ \hline \multicolumn{3}{|c|}{ Accounts payable } \\ \hline \multicolumn{3}{|c|}{ nterest payable } \\ \hline \multicolumn{3}{|c|}{ Income tax payable } \\ \hline \multicolumn{3}{|c|}{ Notes payable } \\ \hline \multicolumn{3}{|c|}{ Common stock } \\ \hline \multicolumn{3}{|c|}{ Retained earnings } \\ \hline \multicolumn{3}{|c|}{ Sales revenue } \\ \hline \multicolumn{3}{|c|}{ Cost of goods sold } \\ \hline \multicolumn{3}{|c|}{ Salaries expense } \\ \hline \multicolumn{3}{|c|}{ Interest expense } \\ \hline \multicolumn{3}{|c|}{ ncome tax expense } \\ \hline \multicolumn{3}{|c|}{ Bad debt expense } \\ \hline Totals & $ & $ \\ \hline \end{tabular} Journal entry worksheet Record the entry to close the expense accounts. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the revenue accounts. Note: Enter debits before credits. The $43,000 beginning balance of inventory consists of 430 units, each costing $100. During January 2024 , Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,150 units for $121,900 on account ( $106 each). January 8 Purchase 1,250 units for $138,750 on account ($111 each). January 12 Purchase 1,350 units for $156,600 on account ($116 each). January 15 Return 165 of the units purchased on January 12 because of defects. January 19 Sell 3,900 units on account for $624,000. The cost of the units sold is determined using a FIfo perpetual inventory system. January 22 Receive $573,000 from customers on accounts receivable. January 24 Pay $380,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,200. January 31 Pay cash for salaries during January, $132,000. January 3 Purchase 1,150 units for $121,900 on account ( $106 each). January 8 Purchase 1,250 units for $138,750 on account ( $111 each). January 12 Purchase 1,350 units for $156,600 on account ( $116 each). January 15 Return 165 of the units purchased on January 12 because of defects. January 19 Sell 3,900 units on account for $624,000. The cost of the units sold is determined using a fIFo perpetual inventory system. January 22 Receive $573,000 from customers on accounts receivable. January 24 Pay $380,000 to inventory suppliers on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,200. January 31 Pay cash for salaries during January, $132,000. 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 $3,750 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 $13,600

Answer & Explanation Solved by verified expert

See Answer