60.1K

Verified Solution

Link Copied!

Required Information On Jonuory 1, 2024, the general ledger of Big Blast Fireworks includes the following occount balances: The $43,000 beginning balance of inventory consists of 430 units, esch costing $100. During January 2024, Big Blast: Fireworks had the following inventory tronsactions: January 3 Purchase 1,150 units for $121, ge on account (\$106 cach). January \& Purchase 1,250 units for \$138,758 on account (\$111 cach). January 12 Purchase 1,350 units for $156, fee on account (\$116 each). January 15 Return 165 of the units purchased on January 12 because of defects. January 19 Sell 3 ,990 units on sccount for $624, eae. The cost of the units sold is deternined using a FIfo perpetual inventary systen. January 22 Receive $573, eae from customers on accounts receivable. January 24 Pay \$38e, eae to inventory supplicrs on accounts payable. January 27 Write off accounts receivable as uncollectible, $2,280. January 31 Pay cash for salarics during January, \$132, eed. The following information is aveilable on January 31, 2024. a. At the end of Jenusry, the company estimstes that the remeining units of inventory purchssed on Jonusry 12 ore expected to sell in Februsry for only $100 esch. [Hint: Determine the number of units remsining from Jonusry 12 after subtracting the units returned on Jonusry 15 and the units assumed sold (FIFO) on January 19.] b. The compony records an odjusting entry for $3,750 for estimsted future uncollectible occounts. c. The company accrues interest on notes paysble for January. Interest is expected to be poid each December 31. d. The company sccrues income toxes at the end of Janusry of $13,600. 5. Prepore a classified balance sheet 8s of Jonuary 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) On Jonusry 1, 2024, the generol ledger of Big Blast Fireworks includes the following account bslonces: The $43,000 beginning bolence of inventory consists of 430 units, esch costing $100. During Janusry 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,150 units for $121,908 on account (\$196 cach). January 8 Purchase 1,250 units for $138,758 on account ( $111 cach). January 12 Purchase 1,350 units for $156,698 on account ( $116 each). January 15 Return 165 of the units purchased on January 12 because of defects. January 19 Sell 3,990 units on account for $624, eae. The cost of the units sold is deternined using a fifo perpetual inventory systen. January 22 Receive $573, eae from customers on accounts receivable. January 24 Pay \$3ge, eae to inventory supplicrs on accounts payable. January 27 Write off accounts receivable as uncollectible, \$2,2ea. January 31 Pay cash for salarics during January, \$132, eed. The following information is available on Janusry 31, 2024. a. At the end of Jenusry, the compony estimstes that the remsining units of inventory purchased on Jonusry 12 ore expected to sell in Februsry for only $100 esch. [Hint: Determine the number of units remsining from Jonusry 12 after subtracting the units returned on Jonuery 15 and the units ossumed sold (FIFO) on January 19.] b. The company records an adjusting entry for $3,750 for estimated future uncollectible accounts. c. The company sccrues interest on notes psysble for Janusry. Interest is expected to be poid each December 31. d. The company accrues income toxes at the end of Janusry of $13,600. 5. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" In the first account ield.) Journal entry worksheet Record the entry to close the revenue accounts. Note: Enter debits befare credits

Answer & Explanation Solved by verified expert

See Answer