On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 25,600 7,000 4,900 68,000 $ 105,500 Credit $ 5,000 83,000 17,500 $ 105,500 During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $11,400 ($950 per month). January 9 Purchase additional supplies on account, $5,300. January 13 Provide services to customers on account, $27,300. January 17 Receive cash in advance from customers for services to be provided in the future, $5,500. January 20 Pay cash for salaries, $13,300. January 22 Receive cash on accounts receivable, $25,900. January 29 Pay cash on accounts payable, $5,800. The following information is available on January 31. a. Rent for the month of January has expired. b. Supplies remaining at the end of January total $4,600. c. By the end of January, $4,550 of services has been provided to customers who paid in advance on January 17. d. Unpaid salaries at the end of January are $4,540. Requirement View transaction list No 1 2 3 Prepare the journal entries for transactions. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. 4 5 General Journal 6 7 Date January 02 January 09 January 13 January 17 January 20 January 22 General Ledger January 29 View journal entry worksheet Prepaid Rent Cash Supplies Accounts Payable Trial Balance Accounts Receivable Service Revenue Cash Deferred Revenue Salaries Expense Cash Cash Accounts Receivable Accounts Payable Cash Income Statement Balance Sheet Analysis Account Title Debit 11,400 5,300 27,300 5,500 13,300 25,900 5,800 Credit 11,400 5,300 27,300 5,500 13,300 25,900 5,800 Ⓒ 8 9 10 11 12 13 January 31 January 31 January 31 January 31 January 31 January 31 Rent Expense Prepaid Rent Supplies Expense Supplies Deferred Revenue Service Revenue Salaries Expense Salaries Payable Service Revenue Retained Earnings Retained Earnings Rent Expense Supplies Expense Salaries Expense 950 5,600 4,550 4,540 31,850 24,390 950 5,600 4,550 4,540 31,850 950 5,600 17,840 Requirement 44 No. Date January 01 1 January 02 4 January 17 5 January 20 6 January 22 7 January 29 General Journal No. Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing 2 9 Date January 01 January 09 January 31 General Ledger Cash Debit 5,500 25,900 Supplies Debit 5,300 Credit Trial Balance 11,400 13,300 5,800 Credit 5,600 Income Statement Balance General Ledger Account 25,600 14,200 19,700 6,400 32,300 26,500 Balance 4,900 10,200 4,600 No. No. Balance Sheet Analysis 3 6 1 8 Dates: January 01 Date January 01 January 13 January 22 Date January 01 January 02 January 31 Accounts Receivable Debit 27,300 Prepaid Rent Debit to: January 31 11,400 Credit 25,900 Credit 950 Balance 7,000 34,300 8,400 Balance 0 11,400 10,450 444 No. No. 11 No. No. 3 10 Date January 01 Date January 01 January 31 Date January 01 Date January 01 January 13 January 31 12 January 31 Land Debit Salaries Payable Debit Common Stock Debit Credit 31,850 Credit Service Revenue Debit 4,540 Credit Credit 27,300 4,550 Balance 68,000 Balance 0 4,540 Balance 83,000 Balance 0 27,300 31,850 0 4 No. No. 2 7 4 10 No. 12 13 No. 9 | 13 Date January 01 January 09 January 29 Date January 01 January 17 January 31 Date January 01 January 31 January 31 Date January 01 January 31 January 31 Accounts Payable Debit 5,800 Deferred Revenue Debit 4,550 Credit 24,390 Retained Earnings Debit 5,600 Credit 5,300 Supplies Expense Debit 5,500 Credit 31,850 Credit 5,600 Balance 5,000 10,300 4,500 Balance 0 5,500 950 Balance 17,500 49,350 24,960 Balance 0 5,600 0 444 44 14 No. 3 10 12 No. Date January 01 January 13 January 31 January 31 Date January 01 5 January 20 11 January 31 13 January 31 Service Revenue Debit 31,850 Credit Salaries Expense Debit 13,300 4,540 27,300 4,550 Credit 17,840 Balance 0 27,300 31,850 0 Balance 0 13,300 17,840 0 < General Journal 44 44 No. 9 13 No. 8 13 Date January 01 January 31 January 31 Date January 01 January 31 January 31 Trial Balance > Supplies Expense Debit 5,600 Rent Expense Debit 950 Credit 5,600 Credit 950 Balance 0 5,600 0 Balance 0 950 0 Requirement Post-closing General Journal Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Salaries Payable Deferred Revenue Common Stock Retained Earnings Total General Ledger Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Trial Balance Income Statement Account Title Balance Sheet Analysis Dynamite Fireworks Trial Balance January 31, 2024 Debit 26,500 8,400 4,600 10,450 68,000 117,950 $ Credit 4,500 4,540 950 83,000 24,960 117,950 d. Unpaid salaries at the end of January are $4,540. Requirement Post-closing Revenues: Total Revenue General Journal Expenses: Prepare an income statement for the period ended January 31, 2024. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. General Ledger Total Expenses Trial Balance Dynamite Fireworks Income Statement For the Year Ended January 31, 2024 Income Statement $ 0 Balance Sheet Analysis 0 0 d. Unpaid salaries at the end of January are $4,540. Requirement Post-closing Current Assets: General Journal Total Current Assets Long-term Assets: Total Assets Prepare a classified balance sheet as of January 31, 2024. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. General Ledger Assets Trial Balance $ Income Statement Dynamite Fireworks Balance Sheet January 31, 2024 Balance Sheet Analysis 0 Current Liabilities: Total Current Liabilities 0 Total Liabilities Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ 0 0 0 0 0 0 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Using the information from the requirements above, complete the 'Analysis' tab. Analyze the following features of Dynamite Fireworks' financial condition: Analysis (a) What is the amount of profit reported for the month of January? The amount of profit reported for the month of January is (b) Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January. The ratio of current assets to current liabilities at the end of January is (c) Based on Dynamite Fireworks' profit and ratio of current assets to current liabilities, indicate whether Dynamite Fireworks appears to be in good or bad financial condition. Does the company appear to be in good or bad financial condition? On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 25,600 7,000 4,900 68,000 $ 105,500 Credit $ 5,000 83,000 17,500 $ 105,500 During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $11,400 ($950 per month). January 9 Purchase additional supplies on account, $5,300. January 13 Provide services to customers on account, $27,300. January 17 Receive cash in advance from customers for services to be provided in the future, $5,500. January 20 Pay cash for salaries, $13,300. January 22 Receive cash on accounts receivable, $25,900. January 29 Pay cash on accounts payable, $5,800. The following information is available on January 31. a. Rent for the month of January has expired. b. Supplies remaining at the end of January total $4,600. c. By the end of January, $4,550 of services has been provided to customers who paid in advance on January 17. d. Unpaid salaries at the end of January are $4,540. Requirement View transaction list No 1 2 3 Prepare the journal entries for transactions. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. 4 5 General Journal 6 7 Date January 02 January 09 January 13 January 17 January 20 January 22 General Ledger January 29 View journal entry worksheet Prepaid Rent Cash Supplies Accounts Payable Trial Balance Accounts Receivable Service Revenue Cash Deferred Revenue Salaries Expense Cash Cash Accounts Receivable Accounts Payable Cash Income Statement Balance Sheet Analysis Account Title Debit 11,400 5,300 27,300 5,500 13,300 25,900 5,800 Credit 11,400 5,300 27,300 5,500 13,300 25,900 5,800 Ⓒ 8 9 10 11 12 13 January 31 January 31 January 31 January 31 January 31 January 31 Rent Expense Prepaid Rent Supplies Expense Supplies Deferred Revenue Service Revenue Salaries Expense Salaries Payable Service Revenue Retained Earnings Retained Earnings Rent Expense Supplies Expense Salaries Expense 950 5,600 4,550 4,540 31,850 24,390 950 5,600 4,550 4,540 31,850 950 5,600 17,840 Requirement 44 No. Date January 01 1 January 02 4 January 17 5 January 20 6 January 22 7 January 29 General Journal No. Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing 2 9 Date January 01 January 09 January 31 General Ledger Cash Debit 5,500 25,900 Supplies Debit 5,300 Credit Trial Balance 11,400 13,300 5,800 Credit 5,600 Income Statement Balance General Ledger Account 25,600 14,200 19,700 6,400 32,300 26,500 Balance 4,900 10,200 4,600 No. No. Balance Sheet Analysis 3 6 1 8 Dates: January 01 Date January 01 January 13 January 22 Date January 01 January 02 January 31 Accounts Receivable Debit 27,300 Prepaid Rent Debit to: January 31 11,400 Credit 25,900 Credit 950 Balance 7,000 34,300 8,400 Balance 0 11,400 10,450 444 No. No. 11 No. No. 3 10 Date January 01 Date January 01 January 31 Date January 01 Date January 01 January 13 January 31 12 January 31 Land Debit Salaries Payable Debit Common Stock Debit Credit 31,850 Credit Service Revenue Debit 4,540 Credit Credit 27,300 4,550 Balance 68,000 Balance 0 4,540 Balance 83,000 Balance 0 27,300 31,850 0 4 No. No. 2 7 4 10 No. 12 13 No. 9 | 13 Date January 01 January 09 January 29 Date January 01 January 17 January 31 Date January 01 January 31 January 31 Date January 01 January 31 January 31 Accounts Payable Debit 5,800 Deferred Revenue Debit 4,550 Credit 24,390 Retained Earnings Debit 5,600 Credit 5,300 Supplies Expense Debit 5,500 Credit 31,850 Credit 5,600 Balance 5,000 10,300 4,500 Balance 0 5,500 950 Balance 17,500 49,350 24,960 Balance 0 5,600 0 444 44 14 No. 3 10 12 No. Date January 01 January 13 January 31 January 31 Date January 01 5 January 20 11 January 31 13 January 31 Service Revenue Debit 31,850 Credit Salaries Expense Debit 13,300 4,540 27,300 4,550 Credit 17,840 Balance 0 27,300 31,850 0 Balance 0 13,300 17,840 0 < General Journal 44 44 No. 9 13 No. 8 13 Date January 01 January 31 January 31 Date January 01 January 31 January 31 Trial Balance > Supplies Expense Debit 5,600 Rent Expense Debit 950 Credit 5,600 Credit 950 Balance 0 5,600 0 Balance 0 950 0 Requirement Post-closing General Journal Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Salaries Payable Deferred Revenue Common Stock Retained Earnings Total General Ledger Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Trial Balance Income Statement Account Title Balance Sheet Analysis Dynamite Fireworks Trial Balance January 31, 2024 Debit 26,500 8,400 4,600 10,450 68,000 117,950 $ Credit 4,500 4,540 950 83,000 24,960 117,950 d. Unpaid salaries at the end of January are $4,540. Requirement Post-closing Revenues: Total Revenue General Journal Expenses: Prepare an income statement for the period ended January 31, 2024. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. General Ledger Total Expenses Trial Balance Dynamite Fireworks Income Statement For the Year Ended January 31, 2024 Income Statement $ 0 Balance Sheet Analysis 0 0 d. Unpaid salaries at the end of January are $4,540. Requirement Post-closing Current Assets: General Journal Total Current Assets Long-term Assets: Total Assets Prepare a classified balance sheet as of January 31, 2024. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. General Ledger Assets Trial Balance $ Income Statement Dynamite Fireworks Balance Sheet January 31, 2024 Balance Sheet Analysis 0 Current Liabilities: Total Current Liabilities 0 Total Liabilities Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ 0 0 0 0 0 0 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Using the information from the requirements above, complete the 'Analysis' tab. Analyze the following features of Dynamite Fireworks' financial condition: Analysis (a) What is the amount of profit reported for the month of January? The amount of profit reported for the month of January is (b) Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January. The ratio of current assets to current liabilities at the end of January is (c) Based on Dynamite Fireworks' profit and ratio of current assets to current liabilities, indicate whether Dynamite Fireworks appears to be in good or bad financial condition. Does the company appear to be in good or bad financial condition?
Expert Answer:
Answer rating: 100% (QA)
Journal Entries No Date Account Titles and Explanation Debit Credit No Date Account Titles and Explanation Debit Credit 1 Jan2 Prepaid Rent 1140000 5 Jan20 Salaries Expense 1330000 Cash 1140000 Cash 1... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Raul works in an environment that has little segmentation and few elements. What can be said about the degree of homogeneity in his environment?
-
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: During January 2024, the following transactions occur: January 2 Purchase rental space for one...
-
Find a current article or news segment (within the last 6 months) of an organization - profit or non-profit - that has *either* engaged in UNETHICAL activity, *or* has received positive publicity for...
-
Determine the equations for the voltage and instantaneous Power in the network in Figure P 9.2 4 2225 A Figure P 92
-
A magnetic field with the time dependence shown in FIGURE 23- 51 is at right angles to a 155-turn circular coil with a diameter of 3.75 cm. What is the induced emf in the coil at (a) T = 2.50 ms, (b)...
-
State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? H0: = 28 ml/kg; H1: 28 ml/kg; two-tailed H0: = 28 ml/kg; H1: > 28 ml/kg; right-tailed H0: = 28...
-
Which of the following assertions concerning the interpretive publications is inaccurate: (a) Interpretive publications consist of auditing Interpretations of the SASs, appendixes to the SASs,...
-
The trial balance columns of the worksheet for Nanduri Company at June 30, 2014, are as follows. Other data: 1. A physical count reveals $500 of supplies on hand. 2. $100 of the unearned revenue is...
-
Mercedes and Alejandro San Martin It is now ten years later (January 2031) and things have changed. Mercedes and Alejandro are now ages 62 and 61, respectively, on January 1, 2031. They both hav...
-
Earnings for several employees for the week ended March 12, 20--, are as follows: Calculate the employer's payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA...
-
Explain the verifying polynomial identities. Please provide an exam and references for further study.
-
For the tapered beam shown in Figure below, it shows a section at midway along its length. The web of the beam has a thickness of 2 mm and is fully effective in resisting direct stress. The beam...
-
You're part of a marketing team tasked with launching a new line of eco-friendly cleaning products. How would you develop a marketing strategy to introduce these products to the market, considering...
-
Our company has 5 business units that we classify as operating segments. Financial data for these units follows: ($1,000s) A Sales Profit B C $1,000 $10,000 $1,500 D $50 $2,500 Assets $1,500 $7,500 E...
-
Determine the correctness of the following statements, and give your reasoning. (1.1) 2020 - n is O(n). (1.2) 2020-n is O(n log n).
-
Please research and share with the class what requirements must be demonstrated according to ADEA and what steps must be taken before filing an age discrimination complaint? 2- Please visit the...
-
Your client, a high-networth investor, is interested in a type of account that provides professional management, the ability to time capital gains and losses for tax purposes, and the flexibility to...
-
On average there are four traffic accidents in a city during one hour of rush-hour traffic. Use the Poisson distribution to calculate the probability that in one such hour there arc (a) No accidents...
-
Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues $3,000,000 of 9% bonds, due in 10 years, with interest payable semiannually on...
-
On June 30, 2024, Exploration Inc. signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,122.87, with the first lease payment...
-
You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in...
-
A sales invoice prepared by the seller is called a purchase invoice by the buyer. True/False
-
A purchase of merchandise for $300 with a trade discount of 10% would require a debit to Purchases of (a) $330. (c) $297. (b) $300. (d) $270.
-
A trade discount is a reduction from the list or catalog price offered to different classes of customers. True/False
Study smarter with the SolutionInn App