I REALLY need someone to help me with Parts 2-7 of this problem. I am lost.
3. Prepare an adjusted trial balance as of January 31, 2021.
6. Record closing entries for revenue and expense accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2.
Adjusted Trail Balance as on January 31,2021 | ||
Accounts | Debit | Credit |
Cash | $ 27500 | $ 0 |
Accounts Receivable | $ 183000 | $ 0 |
Allowance for Uncollective Accounts | $ 11685 | |
Inventory | $ 13700 | $ 0 |
Land | $ 46000 | $ 0 |
Equipment | $ 15000 | $ 0 |
Accumulated Depreciation | $ 0 | $ 2000 |
Depreciation | $ 500 | $ 0 |
Accounts Payable | $ 0 | $ 85500 |
Note Payable | $ 0 | $ 50000 |
Common Stock | $ 0 | $ 35000 |
Retained Earning | $ 0 | $ 33100 |
Sales Revenue | $ 0 | $ 281000 |
Deferred Revenue | $ 0 | $ 5000 |
Cost of Goods Sold | $ 153300 | $ 0 |
Salaries | $ 52000 | $ 0 |
Interest on Note Payable | $ 250 | |
Accrued Interest on Note Payable | $ 250 | |
Bad Debt Expenses | $ 12285 | |
Income Tax Expense | $ 13000 | |
Accrued Income Tax Expenses | $ 13000 | |
Total | $ 516535 | $ 516535 |
Working Note : -
Journal Entry for Point no a to e
a. Depreciation A/c Dr 500
Accumulated Depreciation A/c Cr. 500
(($15000-$3000)/24 months )
b. Bad Debt Expenses A/c Dr. $12,285
Allowance for Uncollectible accounts A/c $12,285
(($11000 x 30%=$3300)+($183,000-$3300)x5%) =$12,285
c. Interest on Note Payable a/c Dr.
Accrued Interest on Note Payable A/c Cr.
($50000 x 6%x1/12) = $250.
d. Income Tax Expenses A/c Dr. $13000
Accrued Income tax expenses Cr . $13000
e. Deferred Revenue A/c Dr. $3000
Sales Revenue A/c Cr. $3000.
Now , we have entered the final balance in above adjusted trail balance.
2. Now we will prepare base on the above adjusted trail balance.
ACME Fireworks | ||
Income Statement | ||
for the year ended January 31,2021 | ||
Sales Revenue | $ 281000 | |
Defferred Revenue | $ 5000 | |
Total Revenue | $ 286000 | |
Cost of Goods Sold | $ 153300 | |
Gross Profit | $ 132700 | |
Operating Expenses | ||
Depreciation | $ 500 | |
Salaries | $ 52000 | |
Bad Debt Expenses | $ 12285 | |
Interest on Note Payable | $ 250 | |
Total Operating Expenses | $ 65035 | |
Profit Before Income tax | $ 67665 | |
Income Tax Expense | $ 13000 | |
Net Profit | $ 54665 |
3.
ACME Fire Work | |||||
Balance Sheet | |||||
For the year ended January 31,201 | |||||
Assets | Liabilities | ||||
Current Assets | $ | $ | Current Liabilities | $ | $ |
Cash | 27500 | Accounts Payable | 85500 | ||
Accounts Receivable | 183000 | 0 | Note Payable | 50000 | |
Less :-Allowance for Uncollective Accounts | 11685 | 171315 | Accured Interest on Note Payable | 250 | |
Inventory | 13700 | Accured Income Tax Expenses | 13000 | ||
Total Current Assests | 212515 | Total Current Liabilities | 148750 | ||
Non Current Assets | Other Liabilities | ||||
Land | 46000 | Deferred Revenue | 5000 | ||
Equipment | 15000 | Accumulated Depreciation | 2000 | ||
Total Non Current Assets | 61000 | Total Other Liabilities | 7000 | ||
Shareholder's equity | |||||
Retained Earning | 33100 | ||||
Add : Net Profit | 49665 | 82765 | |||
Common Stock | 35000 | ||||
Total Shareholder's equity | 117765 | ||||
Total Assets | 273515 | Total Liabilities | 273515 |
6.
Closing Entries | ||
Profit and Loss A/c Dr | $ 281000 | |
Sales Revenue Cr | $ 281000 | |
(Closing Entry for Revenue) | ||
Cost of Goods Sold A/c Dr. | $ 153300 | |
Profit and Loss A/c Dr | $ 153300 | |
(Closing Entry for Cost of Goods Sold) | ||
Depreciation A/c Dr | $ 500 | |
Salaries A/c Dr | $ 52000 | |
Bad Debt Expenses A/c Dr | $ 12285 | |
Interest on Note Payable A/c Dr | $ 250 | |
Income Tax Expense A/c Dr | $ 13000 | |
Profit and Loss A/c Dr | $ 78035 | |
(Closing Entry for Operating Expenses) |
I REALLY need someone to help me with Parts 2-7 of this problem. I am lost....
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 че 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...
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Debit Credit Accounts $ 25,100 46,200 $ Cash Accounts Receivable Allowance for Uncollectible Accounts 4,200 20,000 46,000 15,000 Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) 1,500 28,500 50,000 35,000 33,100 Common Stock Retained Earnings $152,300 $152,300 Totals During January 2021, the following transactions occur: 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one...
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On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Debit Credit Accounts $25,100 46,200 $ 20,000 46,000 15,000 Cash Accounts Receivable Allowance for Uncollectible Accounts 4,200 Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) 1,500 28,500 50,000 35,000 Common Stock Retained Earnings 33,100 $152,300 $152,300 Totals During January 2021, the following transactions occur: 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year...
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On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Debit Credit Accounts $ 25,100 46,200 $ 20,000 46,000 15,000 Cash Accounts Receivable Allowance for Uncollectible Accounts 4,200 Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) 1,500 28,500 50,000 35,000 Common Stock Retained Earnings 33,100 $152,300 $152,300 Totals During January 2021, the following transactions occur: 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one...
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