Question

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:

Accounts	Debit				Credit
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, 2022)						52,000
Common Stock						37,000
Retained Earnings						32,800
Totals	$	156,600			$	156,600

During January 2021, 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.

The following information is available on January 31.

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 $4,500 and a two-year service life.
2. The company estimates future uncollectible accounts. The company determines $13,000 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 $13,200.
5. By the end of January, $3,200 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold).

I need help completing the general journal, income statement, balance sheet and analysis please.

Answer 1

	General Journal
Date	Account Title	Debit	Credit
2-Jan	Cash	8400
	Gift card liability		8400
6-Jan	Inventory	149000
	Accounts payable		149000
15-Jan	Accounts receivable	137000
	Sales revenue		137000
	Cost of Goods sold	74800
	Inventory		74800
23-Jan	Cash	125600
	Accounts receivable		125600
25-Jan	Accounts Payable	92000
	Cash		92000
28-Jan	Allowance for Uncollectible Accounts	5000
	Accounts receivable		5000
30-Jan	Cash	15000
	Accounts receivable	130000
	Sales revenue		145000
	Cost of Goods sold	80500
	Inventory		80500
31-Jan	Salaries expense	52200
	Cash		52200
	Adjusting Entries
a.	Depreciation expense-Equipment	500
	Acc. depn.-Equipment		500
	(16500-4500)/2 yrs./12 mths*1mth
b.	Bad debt expense	11300
	Allowance for Uncollectible Accounts		11300
c.	Interest expense	260
	Interest payable		260
	(52000*6%/12)
d.	Income tax expense	13200
	Income tax payable		13200
e.	Gift card liability	3200
	Sales revenue		3200
		897960	897960

Accounts receivable	for JE.b.		Allowance for Uncollectible Accounts
Beg. Bal.	46600		Beg. Bal.		4400
Jan 15 Cr.sales	137000		Jan 28, A/R w/off	5000
Jan 23, cash recd.		125600	New provn. Reqd.(Bal.fig.)		11300
Jan 28, A/R w/off		5000	Ending balance reqd.	10700
Jan 30, Cr.sales	130000			15700	15700
Jan 31, Bal.c/d		183000
	313600	313600
			Ending Allowance for Uncollectible Acs. Rec. reqd.
			13000*30%=	3900
			(183000-13000)*4%=	6800
			Total allowance reqd.	10700

Trial balance
Accounts	Debit	Credit
Cash	30,100
Accounts Receivable	183,000
Allowance for Uncollectible A/cs		10,700
Inventory	13,900
Land	48,000
Equipment	16,500
Accumulated Depreciation		2,200
Accounts Payable		85,700
Gift card liability		5200
Income tax payable		13200
Interest payable		260
Notes Payable (6%, due April 1, 2022)		52,000
Common Stock		37,000
Retained Earnings		32,800
Sales revenue		285,200
Cost of Goods sold	155300
Depreciation expense-Equipment	500
Salaries expense	52200
Bad debt expense	11300
Interest expense	260
Income tax expense	13200
Totals	524,260	524,260

Income statement
Sales revenue		285,200
Cost of Goods sold		155300
Gross profit		129,900
Less: Operating expenses:
Depreciation exp.-Equip.	500
Salaries expense	52200
Bad debt expense	11300	64000
Operating income		65,900
Less:Interest expense		260
Income before tax		65,640
Less:Income tax expense		13200
Net Income		52,440

Balance sheet
Cash	30,100
Accounts Receivable	183,000
Allowance for Uncollectible Accounts	-10700
Inventory	13,900
Total current assets		216,300
Land	48,000
Equipment	16,500
Accumulated Depreciation	-2200
Total fixed assets		62,300
Total assets		278,600
Liabilities & SH .Equity
Accounts Payable	85,700
Gift card liability	5200
Income tax payable	13200
Interest payable	260
Total current liabilities		104,360
Notes Payable (6%, due April 1, 2022)		52,000
Total Liabilities		156,360
SH .Equity
Common Stock	37,000
Retained Earnings(32800+52440)	85,240
Total SH .Equity		122,240
Total Liabilities & SH .Equity		278,600