90.2K

Verified Solution

Link Copied!

On January 1,2024, the general ledger of Big Biast Fireworks includes the following account balances: The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: ]anuary 3: Purchase 1,450 units for $158,050 on account (5109 each). 3anuary 8 purchase 1,550 units for $176,700 on account (\$114 each). January 12 Purchase 1,650 units for $196,350 bo account (\$119 each) Janaary 15 heturn 180 of the units purchased on January 12 because of defects. 7anuary 19 sell 4 , 8ee units an account for $770,000 the cost of the units sold is deterained using a fifo perpetual inventory system. January 22 Receive $705,900 fron custoners on accounts receivable. January 24 pay $500,000 to inventory suppilers on accounts payable. January 27 urite off accoants receivable as uncollectible, 52,500 . January i1 pay cash for salaries during Janaary, 5135 , e0e. The following informotion is avallable on Jonuary 31, 2024. The following information is avallable on January 31, 2024. a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 are expected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 after subtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,530. for estimated future uncollectible accounts. c. The company accrues interest on notes payable for January, Interest is expected to be paid each December 31. d. The company accrues income taxes at the end of January of $13,900 1. Record each of the transactions ilsted above in the 'General Journal' tab (these are shown as items 1 to 10) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Thial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 . In the 'General Joumal' tab (these are shown as items 11 to 14). 3. Review the adjusted Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a muitiple-step income stotement for the period ended Jonuary 31, 2024, in the 'Income Stotement' tab. 5. Prepare a classified bolance sheet as of January 31,2024 , in the 'Balance sheet' tab. 6. Record the closing entries in the 'General Journal tab (these are shown as items is and 16). Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, in the first account field.) Journal entry worksheet 4567816 Record purchase of 1,450 units for $158,050 on account ( $109 each). Note: Enter debits before credits. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select in the first account field.) Journal entry worksheet 67816 Record purchase of 1,550 units for $176,700 on account ( $114 each). Note: Enter debits before credits. Journal entry worksheet 5678 Record purchase of 1,650 units for $196,350 on account ( $119 each). Note: Enter debits before credits. Journal entry worksheet acord the return of 180 of the units purchased on January 12 because of defects. Note: Enter debits before credits. Journal entry worksheet Record the sale of 4,800 units on account for $720,000. Note: Enter debits before credits. Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer