Sagar On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances:AccountsDebitCreditCash$24,500Accounts Receivable43,000Allowance for Uncollectible Accounts$2,900Inventory43,000Land81,100Accounts Payable28,700Notes Payable (6%, due in 3 years)43,000Common Stock69,000Retained Earnings48,000Totals$191,600$191,600The $43,000 beginning balance of inventory consists of 430 units, each costing $100. During January 2024, Big BlastFireworks had the following inventory transactions:January 3 Purchase 1,150 units for $121,900 on account ($106 each).January 8 Purchase 1,250 units for $138,750 on account ($111 each)January 12 Purchase 1,350 units for $156,600 on account ($116 each).January 15 Return 165 of the units purchased on January 12 because of defects.January 19 Sell 3,900 units on account for $624,000. The cost of the units sold is determined using a FIFO perpetualinventory system.January 22 Receive $573,000 from customers on accounts receivable.January 24 Pay $380,000 to inventory suppliers on accounts payable.January 27 Write off accounts receivable as uncollectible, $2,200.January 31 Pay cash for salaries during January, $132,000.The following information is available on January 31, 2024.a. At the end of January, the company estimates that the remaining units of inventory purchased on January 12 areexpected to sell in February for only $100 each. [Hint: Determine the number of units remaining from January 12 aftersubtracting the units returned on January 15 and the units assumed sold (FIFO) on January 19.]b. The company records an adjusting entry for $3,750 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 $13,600.4. Prepare a multiple-step income statement for the period ended January 31, 2024.BIG BLAST FIREWORKSMultiple-Step Income StatementFor the Month Ended January 31, 2024

Income statement refers to that financial statement which shows the income and expenses of the…

On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $24,500 Accounts Receivable 43,000 Allowance for Uncollectible Accounts $2,900 Inventory 43,000 Land 81,100 Accounts Payable 28,700 Notes Payable (6 %, due in 3 years) 43,000 Common Stock 69,000 Retained Earnings 48,000 Totals $191,600 $191,600

On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $24,500 Accounts Receivable 43,000 Allowance for Uncollectible Accounts $2,900 Inventory 43,000 Land 81,100 Accounts Payable 28,700 Notes Payable (6 %, due in 3 years) 43,000 Common Stock 69,000 Retained Earnings 48,000 Totals $191,600 $191,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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