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2 years ago

Required Information

Business

1 answer:

ycow [4]2 years ago

5 0

Answer:

ACME Fireworks

Income Statement for the period ended January 31, 2021

Sales revenue $292,000

Cost of goods sold 160,360

Gross profit $131,640

Operating expenses:

Salaries 52,700

Bad debts expense 600 53,300

Net income $78,340

Explanation:

a) Data and Calculations:

ACME Fireworks

Accounts Debit Credit

Cash $25,800

Accounts Receivable 47,600

Allowance for Uncollectible Accounts $4,900

Inventory 20,700

Land 53,000

Equipment 18,500

Accumulated Depreciation 2,200

Accounts Payable 29,200

Notes Payable (68, due April 1, 2022) 57,000

Common Stock 42,000

Retained Earnings 30,300

Totals $165,600 $165,600

Inventory

Account Titles Debit Credit

Beginning balance 20,700

Accounts payable 154,000

Cost of goods sold $77,300

Cost of goods sold 83,000

Sales

Account Titles Debit Credit

Accounts receivable $142,000

Cash 15,000

Accounts receivable 135,000

Income summary $292,000

Cost of goods sold

Account Titles Debit Credit

Inventory $77,360

Inventory 83,000

Income summary $160,360

Salaries $52,700

Allowance for Uncollectible Accounts

Account Titles Debit Credit

Beginning balance $4,900

Bad Debts expense 600

Ending balance $5,500

Transaction Analysis:

January 2 Cash $9,400 Gift Cards Liability $9,400

January 6 Inventory $154,000 Account payable $154,000

January 15 Accounts receivable $142,000. Sales revenue $142,000

Cost of the units sold $77,300 Inventory $77,300

January 23 Cash $126,100 Accounts receivable $126,100

January 25 Accounts payable $97,000 Cash $97,000

January 28 Uncollectible Allowance $5,500 Accounts receivable $5,500

January 30 Cash $15,000 Accounts receivable $135,000 Sales revenue $150,000

Cost of the units sold $83,000 Inventory $83,000

January 31 Salaries expense $52,700 Cash $52,700

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