6.

On January 1, Year 1, the general ledger of Company A includes the following account balances:

Accounts	Debit				Credit
Cash	$	12,900
Accounts Receivable		37,400
Inventory		153,700
Land		84,300
Buildings		137,000
Allowance for Uncollectible Accounts					$	3,500
Accumulated Depreciation						11,300
Accounts Payable						36,400
Common Stock						217,000
Retained Earnings						157,100
Totals	$	425,300			$	425,300

During January Year 1, the following transactions occur:

January 1		Borrow $117,000 from Company B Corporation. The installment note bears interest at 4% annually and matures in 5 years. Payments of $2,155 are required at the end of each month for 60 months.
January 4		Receive $32,700 from customers on accounts receivable.
January 10		Pay cash on accounts payable, $28,000.
January 15		Pay cash for salaries, $30,600.
January 30		Company A sales for the month total $198,000. Sales include $66,700 for cash and $131,300 on account. The cost of the units sold is $119,000.
January 31		Pay the first monthly installment of $2,155 related to the $117,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

1. Prepare a multiple-step income statement for the period ended January 31, Year 1.

2. Prepare a classified balance sheet as of January 31, Year 1. (Hint: The carrying value of notes payable on January 31, Year 1 is $115,235; $21,641 is reported as notes payable in the current liabilities section and $93,594 is reported as notes payable in the long-term liabilities section ($21,641 + $93,594 = $115,235). (Amounts to be deducted should be indicated with a minus sign.)

3.Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)