Question

The following information applies to the questions displayed below.]
  
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:
  

Accounts	Debit			Credit
Cash	$	26,800
Accounts Receivable		49,600
Allowance for Uncollectible Accounts				$	5,900
Inventory		21,700
Land		63,000
Equipment		23,500
Accumulated Depreciation					3,200
Accounts Payable					30,200
Notes Payable (6%, due April 1, 2019)					67,000
Common Stock					52,000
Retained Earnings					26,300
Totals	$	184,600		$	184,600

  
During January 2018, the following transactions occur:

January 2. Sold gift cards totaling $11,400. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $164,000.
January 15. Firework sales for the first half of the month total $152,000. All of these sales are on account. The cost of the units sold is $82,300.
January 23. Receive $127,100 from customers on accounts receivable.
January 25. Pay $107,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $6,500.
January 30. Firework sales for the second half of the month total $160,000. Sales include $11,000 for cash and $149,000 on account. The cost of the units sold is $88,000.
January 31. Pay cash for monthly salaries, $53,700.

1.

value:
15.00 points

Required information

1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

Answer 1

Solution

Acme Fireworks

Journal Entries

Date	Account Titles and Explanation	Acct. No.	Debit	Credit
2-Jan-18	Cash		$11,400
	Deferred Revenue			$11,400
	(To record gift cards sold, redeemable within one year)
6-Jan-18	Inventory		$164,000
	Accounts Payable			$164,000
	(To record purchase of inventory on account)
15-Jan-18	Accounts Receivable		$152,000
	Sales Revenue			$152,000
	(To record credit sales)
15-Jan-18	Cost of Goods Sold		$82,300
	Inventory			$82,300
	(To record cost of goods sold on credit)
23-Jan-18	Cash		$127,100
	Accounts Receivable			$127,100
	(To record cash received from accounts receivable)
25-Jan-18	Accounts Payable		$107,000
	Cash			$107,000
	(To record payment made to accounts payable)
28-Jan-18	Allowance for Uncollectible Accounts		$6,500
	Accounts Receivable			$6,500
	(To record uncollectibles )
30-Jan-18	Cash		$11,000
	Accounts Receivable		$149,000
	Sales Revenue			$160,000
	(To record sales - cash and credit for second half of January)
30-Jan-18	Cost of Goods Sold		$88,000
	Inventory			$88,000
	(To record cost of goods sold)
31-Jan-18	Salaries Expense		$53,700
	Cash			$53,700
	(To record salaries paid)