Question

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,100 46,200 $ 4,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings 20,000 46,000 15,000 1,500 28,500 50,000 35,000 33,100 $152,300 Totals $152,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $147,000. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $ 73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $ 132,000 on account. The cost of the units sold is $79,500. January 31 Pay cash for monthly salaries, $52,000.

Answer 1

ACME Fireworks
Adjusted Trial Balance
January 31, 2021
Accounts	Debit	Credit
Cash ($25,100+$8,000+$125,400-$90,000+$11,000-$52,000)	$     27,500
Accounts receivable ($46,200+$135,000-$125,400-$4,800+$132,000)	$   183,000
Allowance for doubtful accounts ($4,200-$4,800)	$           600
Inventory ($20,000+$147,000-$73,800-$79,500)	$     13,700
Land	$     46,000
Equipment	$     15,000
Accumulated depreciation		$       1,500
Accounts payable ($28,500+$147,000-$90,000)		$     85,500
Notes payable		$     50,000
Deferred revenue		$       8,000
Common Stock		$     35,000
Retained earnings		$     33,100
Sales revenue ($135,000+$143,000)		$   278,000
Cost of goods sold ($73,800+$79,500)	$   153,300
Salaries expense	$     52,000
Total	$   491,100	$   491,100

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