Need help with the multiple-step income statement as well as the balance sheet.
ID: 2399614 • Letter: N
Question
Need help with the multiple-step income statement as well as the balance sheet.
Thanks for the help.
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Debit Credit $ 27100 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings 50,200 $ 6,200 22,000 66,000 25,000 3,500 30,500 70,000 55,000 25,100 Totals $190,300 $190,300 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $167,000. January 15. Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the units sold is $83,800. January 23. Receive $127,400 from customers on accounts receivable January 25. Pay $110,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $6,800 January 30. Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000 on account. The cost of the units sold is $89,500 January 31. Pay cash for monthly salaries, $54,000.Explanation / Answer
Answers
Cash
A/R
Allowances for Uncollectible A/C
Inventory
Land
Equipment
Accumulated Depreciation
Beginning balance
$ 27,100.00
$ 50,200.00
$ 6,200.00
$ 22,000.00
$ 66,000.00
$ 25,000.00
$ 3,500.00
Jan-02
$ 12,000.00
Jan-06
$ 167,000.00
Jan-15
$ 155,000.00
$ (83,800.00)
Jan-23
$ 127,400.00
$ (127,400.00)
Jan-25
$ (110,000.00)
Jan-28
$ (6,800.00)
$ (6,800.00)
Jan-30
$ 17,000.00
$ 146,000.00
$ (89,500.00)
Jan-31
$ (54,000.00)
Jan-31
$ 17,340.00
$ 825.00
Ending Balances
$ 19,500.00
$ 217,000.00
$ 16,740.00
$ 15,700.00
$ 66,000.00
$ 25,000.00
$ 4,325.00
Accounts payable
Notes Payable
Common Stock
Retained Earnings
Unearned Revenue/Gift Card Liability
Interest payable
Income Taxes Payable
Beginning balance
$ 30,500.00
$ 70,000.00
$ 55,000.00
$ 25,100.00
Jan-02
$ 12,000.00
Jan-06
$ 167,000.00
Jan-15
$ 71,200.00
Jan-23
Jan-25
$ (110,000.00)
Jan-28
Jan-30
$ 73,500.00
Jan-31
$ (82,515.00)
$ (5,000.00)
$ 350.00
$ 15,000.00
Ending Balances
$ 87,500.00
$ 70,000.00
$ 55,000.00
$ 87,285.00
$ 7,000.00
$ 350.00
$ 15,000.00
Revenue
Salaries expense
Depreciation expense
Bad Debt Expense
Interest expense
Income Tax Expense
Cost of Goods Sold
Jan-15
$ 155,000.00
$ 83,800.00
Jan-31
$ 5,000.00
$ 54,000.00
$ 825.00
$ 17,340.00
$ 350.00
$ 15,000.00
Jan-30
$ 163,000.00
$ 89,500.00
TOTAL
$ 323,000.00
$ 54,000.00
$ 825.00
$ 17,340.00
$ 350.00
$ 15,000.00
$ 173,300.00
Sales Revenue
$ 323,000.00
Cost of Goods Sold
$ 173,300.00
Gross Profits
$ 149,700.00
Salaries expense
$ 54,000.00
Depreciation expense
$ 825.00
Bad Debt Expense
$ 17,340.00
Total Operating expense
$ 72,165.00
Operating Income
$ 77,535.00
Interest expense
$ 350.00
Income before Income taxes
$ 77,185.00
Income Tax Expense
$ 15,000.00
Net Income
$ 62,185.00
ASSETS
LIABILITIES
Cash
$ 19,500.00
Accounts Payable
$ 87,500.00
Accounts receivables
$ 217,000.00
Income Tax Payable
$ 15,000.00
Less: Allowances for uncollectible accounts
$ (16,740.00)
$ 200,260.00
Interest Payable
$ 350.00
Inventory
$ 15,700.00
Unearned Revenue/Gift Card Liability
$ 7,000.00
Total Current Assets
$ 235,460.00
Total Current Liabilities
$ 109,850.00
Notes Payable
$ 70,000.00
Land
$ 66,000.00
Total LIABILITIES
$ 179,850.00
Equipment
$ 25,000.00
Less: Accumulated Depreciation
$ (4,325.00)
$ 20,675.00
STOCKHOLDERS' EQUITY
Common Stock
$ 55,000.00
Retained Earnings
$ 87,285.00
Total Stockholder's Equity
$ 142,285.00
Total ASSETS
$ 322,135.00
Total LIABILITIES & STOCKHOLDERS' EQUITY
$ 322,135.00
Cash
A/R
Allowances for Uncollectible A/C
Inventory
Land
Equipment
Accumulated Depreciation
Beginning balance
$ 27,100.00
$ 50,200.00
$ 6,200.00
$ 22,000.00
$ 66,000.00
$ 25,000.00
$ 3,500.00
Jan-02
$ 12,000.00
Jan-06
$ 167,000.00
Jan-15
$ 155,000.00
$ (83,800.00)
Jan-23
$ 127,400.00
$ (127,400.00)
Jan-25
$ (110,000.00)
Jan-28
$ (6,800.00)
$ (6,800.00)
Jan-30
$ 17,000.00
$ 146,000.00
$ (89,500.00)
Jan-31
$ (54,000.00)
Jan-31
$ 17,340.00
$ 825.00
Ending Balances
$ 19,500.00
$ 217,000.00
$ 16,740.00
$ 15,700.00
$ 66,000.00
$ 25,000.00
$ 4,325.00
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