60.1K

Verified Solution

Link Copied!

prepare a multi step income statement for the period end of January 31, 2021

Debit Required information [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 Credit Cash $ 25,200 Accounts Receivable 46,400 Allowance for Uncollectible Accounts $ 4,300 Inventory 20,100 Land 47,000 Equipment 16,000 Accumulated Depreciation 1,600 Accounts Payable 28,600 Notes Payable (6%, due April 1, 2022) 51,800 Common Stock 36,000 Retained Earnings 33,200 Totals $154,700 $154,700 During January 2021, the following transactions occur January 2 Sold gift cards totaling $8,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $148,000. January 15 Firework sales for the first holf of the month total $136,000. All of these sales are on account. The cost of the units sold is $74,300. January 23 Receive $125,500 from customers on accounts receivable. January 25 Pay $91,000 to inventory suppliers on accounts payable. January 28 Write oft accounts receivable as uncollectible, $4,900. January 30 Firework sales for the second half of the month total $144,000. Sales include $10,000 for cash and $134,000 on account. The cost of the units sold is $80,000. January 31 Pay cash for monthly salaries, $52,100. Prepare a multiple-step income statement for the period ended January 31, 2021 ACME FIREWORKS Income Statement For the year ended January 31, 2021 4. Prepare a multiple-step income statement for the period en ACME FIREWORKS Income Statement For the year ended January 31, 2021 $ 0 Total operating expenses 0 0 0 A 0

Answer & Explanation Solved by verified expert

See Answer