1. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

   2. Prepare an income statement for the period ended January 31, 2021. 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.

 3. Prepare a classified balance sheet as of January 31, 2021. 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.

 4. Using the previous requirements from above, complete the "Analysis."

 

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts. Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings. Totals. Debit $ 60,200 28,000 37,800 30,000 170,000 Credit $ 3,700 16,300 235,000 71,000 $ 326,000 $326,000 During January 2021, the following transactions occurred: January 1 Purchased equipment for $21,000. The company estimates a residual value of $3,000 and a six-year service life. January 4 Paid cash on accounts payable, $11,000. January 8 Purchased additional inventory on account, $97,900. January 15 Received cash on accounts receivable, $23,500 January 19 Paid cash for salaries, $31,300. January 28 Paid cash for January utilities, $18,000. January 30 Firework sales for January totaled $235,000. All of these sales were on account. The cost of the units sold was $122,500. c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $34,100. e. Accrued income taxes at the end of January are $10,500. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. At the end of January, $4,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $30,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.