On January 1, 2024, the general ledger of TNT Fireworks included the following account balances: During January

Question:

On January 1, 2024, the general ledger of TNT Fireworks included the following account balances:

During January 2024, the following transactions occurred:

Required:
1. Record each of the transactions listed above in the “General Journal” tab (these are shown as items 1–8), assuming a perpetual FIFO inventory system. Review the “General Ledger” and the “Trial Balance” tabs to see the effect of the transactions on the account balances.

2. Record adjusting entries on January 31 in the “General Journal” tab (these are shown as items 9–13):
a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
b. The company records an adjusting entry for $5,900 for estimated future uncollectible accounts.
c. The company has accrued interest on notes receivable for January. Interest will be received each December 31.
d. Unpaid salaries owed to employees at the end of January are $32,600.
e. The company accrued income taxes at the end of January of $9,000.
3. Review the adjusted “Trial Balance” as of January 31, 2024, in the “Trial Balance” tab.
4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the “Income Statement” tab.
5. Prepare a classified balance sheet as of January 31, 2024, in the “Balance Sheet” tab.
6. Record closing entries in the “General Journal” tab (these are shown as items 14–15).
7. Using the information from the requirements above, complete the “Analysis” tab.
a. Calculate the return on assets ratio for the month of January. If the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies in the same industry?
b. Calculate the profit margin for the month of January. If the industry average profit margin is 4%, is the company more or less efficient at converting sales to profit than other companies in the same industry?
c. Calculate the asset turnover ratio for the month of January. If the industry average asset turnover is 0.5 times per month, is the company more or less efficient at producing revenues with its assets than other companies in the same industry?