During January 2018, the following transactions occur: January 2. Sold gift card

Question

During January 2018, the following transactions occur:

January 2. Sold gift cards totaling $8,400. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $149,000.
January 15. Firework sales for the first half of the month total $137,000. All of these sales are on account. The cost of the units sold is $74,800.
January 23. Receive $125,600 from customers on accounts receivable.
January 25. Pay $92,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $5,000.
January 30. Firework sales for the second half of the month total $145,000. Sales include $15,000 for cash and $130,000 on account. The cost of the units sold is $80,500.
January 31. Pay cash for monthly salaries, $52,200.

Please prepare an adjusted trial balance and a multi step income statement for the above.

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Debit Credit $ 25,300 Accounts Recevable 46,600 S 4,400 Inventory Land Equipment 20,200 48,000 16,500 Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retolned Earnings 1,700 28,700 52,000 37,000 32,800 Totals $156,600 S156,600 During January 2018, the following transactions occur January 2. Sold gift cards totaling $8.400. The cards are redeemable for merchandise within one year of the purchase date January 6. Purchase additional inventory on account, $149,000. January 15. Firework sales for the first half of the month total $137,000. All of these sales are on account. The cost of the units sold is $74,800 January 23. Receive $125,600 from customers on accounts receivable January 25. Pay $92,000 to inventory suppliers on accounts payable January 28. Write off accounts receivable as uncollectible, $5,000. January 30. Firework sales for the second half of the month total $145,000. Sales include $15,000 for cash and $130,000 on account. The cost of the units sold is $80,500. January 31. Pay cash for monthly salaries, $52,200.

Explanation / Answer

In the books of ACME Fireworks:

Date Account Titles Debit Credit January $ $ 2 Cash 8,400 Unearned Revenue 8,400 6 Inventory 149,000 Accounts Payable 149,000 15 Accounts Receivable 137,000 Sales 137,000 Cost of Goods Sold 74,800 Inventory 74,800 23 Cash 125,600 Accounts Receivable 125,600 25 Accounts Payable 92,000 Cash 92,000 28 Allowance for Uncollectible Accounts 5,000 Accounts Receivable 5,000 30 Cash 15,000 Accounts Receivable 130,000 Sales 145,000 30 Cost of Goods Sold 80,500 Inventory 80,500 31 Salaries Expense 52,200 Cash 52,200

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