Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The following information applies to the questions displayed below.) On January

ID: 2534364 • Letter: T

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: Debit Credit 27000 50,000 Cash $ 6,100 Inventory Land 21,900 65,000 24,500 Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings 3100 30.400 63,000 54,000 25,500 Totals $188,400 $188400 During January 2018, the following transactions occur: January 2. Sold gift cards toteling $11,800. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase adcitional inventory on account, S166,000. January 15. Firework sales for the first half of the month total $154,000. All of these sales are on account The cost of the unlts sold is $83,300. January 23. Receive $127,300 from customers on accounts recelvable. January 25. Pay $109,000 to inventory suppliers on accounts payable January 28. Write off accounts receivable as uncollectible, $6,700. January 30. Firework sales for the second half of the month total $162,000. Sales include $10,000 for cash and $152,000 on account. The cost of the units sold is $89,000. January 31. Pay cash for monthly salaries, $53,900. 6. Record closing entries.?It no entry is required for a transactionevent. select "No journal entry required" in the first account field.) 6. Record closing entries. (If no entry is required tor a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet ournal entry worksheet Record the closing entry for expense accounts, Record the clesing entry for revenue accounts. Note: Enter debits before geits. Note: Enter debits before credts General Date General Journal Debit arary 31, 2018 January 31, 2018 Record entry Clear entry View general journal

Explanation / Answer

316000

Date Account Debit credit 1 Gift card revenue 11800 sales revenue (154000+162000)

316000

Income statement 327800 [To close revenue] 2 Income summary 226545 cost of good sold [83300+89000] 172300 salaries expense 53900 Interest expense [69000*.06*1/12] 345 [To close expense] 3 Income summary 101255 Retained earning 101255 [to close net income ]