Question

In: Accounting

Accounts Debit Credit Cash 26700 Accounts Receivable 49400 Allowance for Uncollectible accounts 5800 Inventory 21600 Land...

Accounts	Debit	Credit
Cash	26700
Accounts Receivable	49400
Allowance for Uncollectible accounts		5800
Inventory	21600
Land	62000
Equipment	23000
Accumulated Depreciation		3100
Accounts payable		30,100
Notes payable(6%,due april 1, 2019)		66,000
Common Stock		51,000
Retained Earnings		26,700
Totals	182,700	182,700

January 2. Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $163,000.
January 15. Firework sales for the first half of the month total $151,000. All of these sales are on account. The cost of the units sold is $81,800.
January 23. Receive $127,000 from customers on accounts receivable.
January 25. Pay $106,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $6,400.
January 30. Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500.
January 31. Pay cash for monthly salaries, $53,600.

1)Record Each Transaction losted above

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $5,000 and a two-year service life.
2. The company estimates future uncollectible accounts. The company determines $27,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January.
4. Accrued income taxes at the end of January are $14,600.
5. By the end of January, $4,600 of the gift cards sold on January 2 have been redeemed.

2. Record the adjusting entries on January 31 for the above transactions.

3. Prepare an adjusted trial balance as of January 31, 2018.

4. Prepare a multiple-step income statement for the period ended January 31, 2018.
5. Prepare a classified balance sheet as of January 31, 2018.

6. Record closing entries.

7a-1. Calculate the current ratio at the end of January.

3. Prepare an adjusted trial balance as of January 31, 2018.
a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average?

b-1. Calculate the acid-test ratio at the end of January.

b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)?

c-1. Assume the notes payable were due on April 1, 2018, rather than April 1, 2019. Calculate the revised current ratio at the end of January.

c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged.

I DESPERATELY NEED QUESTIONS 1-6 ANSWERED BEFORE 11:59! PLEASE HELP!!!

Expert Solution

ekkarill92 answered 6 months ago

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