Exercise 3 21 (Algo) Complete the accounting cycle (LO3 3, 3 4, 3 5, 3 6) On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances AccountsDebitCreditCash$25,300Accounts Receivable6,700Supplies4,600Land65,000Accounts Payable$4,700Common Stock80,000Retained Earnings16,900Totals$101,600$101,600 During January 2024, the following transactions occur January 2Purchase rental space for one year in advance, $10,500 ($875 month) January 9Purchase additional supplies on account, $5,000 January 13Provide services to customers on account, $27,000 January 17Receive cash in advance from customers for services to be provided in the future, $5,200 January 20Pay cash for salaries, $13,000 January 22Receive cash on accounts receivable, $25,600 January 29Pay cash on accounts payable, $5,500 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 $4,300 All other supplies have been used By the end of January, $4,325 of services has been provided to customers who paid in advance on January 17 Unpaid salaries at the end of January are $4,750 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 What is the amount of profit reported for the month of January Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January 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

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Exercise 3-21 (Algo) Complete the accounting cycle (LO3-3, 3-4, 3-5, 3-6) On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account

Exercise 3-21 (Algo) Complete the accounting cycle (LO3-3, 3-4, 3-5, 3-6)

On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances:

AccountsDebitCreditCash$25,300Accounts Receivable6,700Supplies4,600Land65,000Accounts Payable$4,700Common Stock80,000Retained Earnings16,900Totals$101,600$101,600

During January 2024, the following transactions occur:

January 2Purchase rental space for one year in advance, $10,500 ($875/month).January 9Purchase additional supplies on account, $5,000.January 13Provide services to customers on account, $27,000.January 17Receive cash in advance from customers for services to be provided in the future, $5,200.January 20Pay cash for salaries, $13,000.January 22Receive cash on accounts receivable, $25,600.January 29Pay cash on accounts payable, $5,500.

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 $4,300. All other supplies have been used.
By the end of January, $4,325 of services has been provided to customers who paid in advance on January 17.
Unpaid salaries at the end of January are $4,750.

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:

What is the amount of profit reported for the month of January?
Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January.
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.