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3 years ago

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:

1 answer:

5 0

The Adjusted Trial Balance of ACME Fireworks on January 31, 2021 is as follows and totals $517,300 on both sides.

Adjusted Trial Balance

January 31, 2021

Accounts Debit Credit

Cash $27,000

Accounts Receivable 188,400

Allowance for Uncollectible Accounts $ 600

Inventory 15,000

Land 59,000

Equipment 21,500

Redeemable Gift Cards 8,200

Accumulated Depreciation 2,800

Accounts Payable 86,800

Notes Payable (6%, due April 1, 2019) 63,000

Common Stock 48,000

Retained Earnings 27,900

Sales Revenue 280,000

Cost of Goods Sold 154,300

Salaries Expenses 52,100

Totals $ 517,300 $ 517,300

Data and Calculations:

ACME Fireworks General Ledger Account Balances

January 1, 2021

Accounts Debit Credit

Cash $ 26,400

Accounts Receivable 48,800

Allowance for Uncollectible Accounts $ 5,500

Inventory 21,300

Land 59,000

Equipment 21,500

Accumulated Depreciation 2,800

Accounts Payable 29,800

Notes Payable (6%, due April 1, 2019) 63,000

Common Stock 48,000

Retained Earnings 27,900

Totals $ 177,000 $ 177,000

Analysis of Transactions:

Jan. 2 Cash $8,200 Redeemable Gift Cards $8,200

Jan. 6 Inventory $148,000 Accounts Payable $148,000

Jan. 15 Accounts Receivable $136,000 Sales Revenue $136,000

Cost of Goods Sold $74,300 Inventory $74,300

Jan. 23 Cash $125,500 Accounts Receivable $125,500

Jan. 25 Accounts Payable $91,000 Cash $91,000

Jan. 28 Allowance for Uncollectible Accounts $4,900 Accounts Receivable $4,900

Jan. 30 Cash $10,000 Accounts Receivable $134,000 Sales Revenue $144,000

Cost of Goods Sold $80,000 Inventory $80,000

Jan. 31 Salaries Expense $52,100 Cash $52,100

Adjustments of the Trial Balance with Transactions:

Accounts Debit Credit

Cash $ 26,400 + 8,200 + 125,500 - 91,000 + 10,000 - 52,100

Accounts Receivable 48,800 + 136,000 - 125,500 - 4,900 + 134,000

Allowance for Uncollectible Accounts $ 5,500 - 4,900

Inventory 21,300 + 148,000 - 74,300 - 80,000

Land 59,000

Equipment 21,500

Redeemable Gift Cards 8,200

Accumulated Depreciation 2,800

Accounts Payable 29,800 + 148,000 - 91,000

Notes Payable (6%, due April 1, 2019) 63,000

Common Stock 48,000

Retained Earnings 27,900

Sales Revenue 136,000 + 144,000

Cost of Goods Sold 74,300 + 80,000

Salaries Expenses 52,100

Learn more: brainly.com/question/24872559

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3 years ago

Please prepare the multi-step income statement, the statement of stockholders' equity and the classified balance sheet.

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Answer:

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Net Income = $39,000

Ending balance of common stock = $300,000

Ending balance of retained earnings = $95,000

Ending total stockholders' equity = $395,000

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Net long-term assets = $265,000

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Total liabilities = 68,000

Explanation:

a. Multi-step Income Statement

Multi-step Income Statement put each revenues and expenditures items into different categories to show gross profit and net income. This can be prepared as follows:

Multi-step Income Statement

For the year ended

Details $

Sales Revenue 545,000

Sales Discount (45,000)

Net Sales Revenue 500,000

Cost of Goods Sold (400,000)

Gross profit 100,000

Operating expenses:

Rent Expense (12,000)

Depreciation Expense (10,000)

Salaries Expenses (25,000)

Operating Income 53,000

Non-operating expenses:

Interest Expense (6,000)

Income before tax 47,000

Income Tax Expense (8,000)

Net income 39,000

Dividend paid (4,000)

Retained earning for the year 35,000

b. Changes in Retained Earnings

Details $ 

Beginning retained earnings 60,000

Retained earning for the year 35,000

Ending retained earnings 95,000

c. Movement in Common Stock

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock  300,000 

c. Statement of stockholders' equity

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock 300,000

Ending retained earnings 95,000

Ending total stockholders' equity 395,000

d. Classified Balance Sheet

Classified balance sheet shows each of the componets of assets, liabilities and equity. This can be prepared as follows:

Classified Balance Sheet

As at the year ended

Details $ $ 

Long-Term Assets

Buildings 65,000

Equipment 220,000

Total Long-Term Assets 285,000

Accumulated Depreciation 20,000

Net Long-Term Assets 265,000

Current Assets

Cash 12,000

Accounts Receivable 150,000

Supplies 36,000

Total Current Assets 198,000

Total Assets 463,000

Financed by:

Ending total stockholders' equity 395,000

Current Liability

Accounts Payable 28,000

Long-Term Liability

Notes Payable (Due in 2years) 40,000

Total Liabilities 68,000

Total Equity $ Liabilities  463,000 

Conclusion

As both the Total Assets and Total Equity and Liabilities are each equal to $463,000, it implies the financial statement is accurately prepared since both must always be equal.

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