Accounts Debit Credit Cash $24,100 Accounts Receivable 5,500 Supplies 3,400 Land 53,000 Accounts Payable $3,500 Common Stock 68,000 Retained Earnings 14,500 Totals $86,000 $86,000 During January 2024, the following transactions occur: Questions January 2 Purchase rental space for one year in advance, $6,900 ($575/month). January 9 Purchase additional supplies on account, $3,800. January 13 Provide services to customers on account, $25,800. January 17 January 20 January 22 Receive cash in advance from customers for services to be provided in the future, $4,000. Pay cash for salaries, $11,800. Receive cash on accounts receivable, $24,400. January 29 Pay cash on accounts payable, $4,300. Required: 1. Record each of the transactions listed above. 2. Record the adjusting entries on January 31. . Rent for the month of January has expired. Supplies remaining at the end of January total $3,100. All other supplies have been used. By the end of January, $3,425 of services has been provided to customers who paid in advance on January 17. . Unpaid salaries at the end of January are $5,590. 3. Prepare an adjusted trial balance as of January 31, 2024. 4. Prepare an income statement for the period ended January 31, 2024. 5. Prepare a classified balance sheet as of January 31, 2024. 6. Record closing entries. 7. Analyze the following features of Dynamite Fireworks' financial condition: a. What is the amount of profit reported for the month of January? b. Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January. 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. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7a Req 7b Req 7c Record the adjusting entries on January 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Date January 31 General Journal Rent Expense Prepaid Rent 2 January 31 Supplies Expense Supplies 2 Debit Credit 575 575 300 300 3 January 31 Deferred Revenue 3,425 Service Revenue 3,425 4 January 31 Salaries Expense Salaries Payable < Req 1 Req 3 > 5,590 5,590 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Prepare an income statement for the period ended January 31, 2024. Req 7a Req 7b Req 7c DYNAMITE FIREWORKS Income Statement For the Year Ended January 31, 2024 Revenues: Req 1 Req 2 Service Fee Expense $ 25,800 Req 3 Req 4 Req 5 Req 6 Req 7a Rent Expense 5,575 Expenses: Prepare an adjusted trial balance as of January 31, 2024. Supplies Expense $ Salaries Expense 300 11,800 Accounts Cash Accounts Receivable Supplies Land DYNAMITE FIREWORKS Adjusted Trial Balance January 31, 2024 Debit Credit S 35,000 5,500 300 53,000 Accounts Payable 400 Deferred Revenue $ 575 Common Stock 68,000 Retained Earnings 14,500 Rent Expense 6,900 Service Revenue 29,225 Salaries Expense 17,390 Salaries Payable 5,590 4 3 Complete this question by entering your answers In the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7a Req 7b Req 7c Prepare a classified balance sheet as of January 31, 2024. DYNAMITE FIREWORKS Balance Sheet January 31, 2024 Assets Liabilities Current assets: Cash Current liabilities: $6,100 Accounts Payable Accounts Receivable Prepaid Rent G 3,100 Salaries Payable 1,325 Deferred Revenue Total current liabilities 12,665 Totals $ 176,000 $ 60,380 Total current assets Long-term assets: Land 10,525 Stockholder's Equity G 500 5,590 6,575 5 53,000 Common Stock Retained Earrings O 68,000 34,960 Total stockholders' equity 102,960 Total assets $63,525 Total liabilities and stockholders' equity $115,625 Reg 4 Req 6 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7a Req 7b Req 7c Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Date 1 January 31, 2024 Service Revenue Retained Earnings 2 January 31, 2024 Retained Earnings General Journal Debit 25,800 Credit 25,800 23,250 G 23,250 6 a. What is the amount of profit reported for the month of January? b. Calculate the ratio of current assets to current liabilities (the current ratio) at the end of Ja c. Based on Dynamite Fireworks' profit and ratio of current assets to current liabilities, indica to be in good or bad financial condition. complete. 7A Complete this question by entering your anss he t below. Salaries Expense Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7a Req 7b What is the amount of profit reported for the month of January? Amount of profit $8,125 < Req 6 Req 7b >