Question

Cash	$	25,300
Accounts Receivable		46,600
Allowance for Uncollectible Accounts				$	4,400
Inventory		20,200
Land		48,000
Equipment		16,500
Accumulated Depreciation					1,700
Accounts Payable					28,700
Notes Payable (6%, due April 1, 2019)					52,000
Common Stock					37,000
Retained Earnings					32,800
Totals	$	156,600		$	156,600

During January 2018, the following transactions occur:

January 2. Sold gift cards totaling $8,400. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $149,000.
January 15. Firework sales for the first half of the month total $137,000. All of these sales are on account. The cost of the units sold is $74,800.
January 23. Receive $125,600 from customers on accounts receivable.
January 25. Pay $92,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $5,000.
January 30. Firework sales for the second half of the month total $145,000. Sales include $15,000 for cash and $130,000 on account. The cost of the units sold is $80,500.
January 31. Pay cash for monthly salaries, $52,200.

Please prepare a trial balance and multi step income statement.

Answer 1

Accrued Interest= 52000*6%*1/12=260

Januray 28 Entry Allowance for Uncollectible Accounts 4400

Bad Debts 600

To Trade Recievables Account 5000

Income Statement

Income Statement
Sales	282000
Cost of Goods Sold	155300
Gross Profit	126700
Operating expenses
Salary	52200
Bad Debt	600
Total Operating Expenses	52800
Operating Income	73900
Non Operating or Other
Sale of gift cards	8400
Interest	-260
Total Non Operating	8140
Net Income	82040