Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hi I need parts 4,5,6,7 completed, the ones before it are already done but they have more info Required information On January 1, 2021, the
hi I need parts "4,5,6,7" completed, the ones before it are already done but they have more info
Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $24,900 6,300 4,200 61,000 $ 4,300 76,000 16,100 $ 96,400 $96,400 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $9,300 ($775/month). January 9 Purchase additional supplies on account, $4,600. January 13 Provide services to customers on account, $26,600. January 17 Receive cash in advance from customers for services to be provided in the future, $4,800. January 20 Pay cash for salaries, $12,600. January 22 Receive cash on accounts receivable, $25,200. January 29 Pay cash on accounts payable, $5,100. View transaction list View journal entry worksheet General Journal Credit No 1 Date January 02 Debit 9,300 Prepaid Rent Cash 9,300 2 January 09 4,600 Supplies Accounts Payable 4,600 3 January 13 26,600 Accounts Receivable Service Revenue 26,600 4 January 17 4,800 Cash Deferred Revenue 4,800 5 January 20 Salaries Expense 12,600 Cash 12,600 6 January 22 25,200 Cash Accounts Receivable 25,200 7 January 29 5,100 Accounts Payable Cash 5,100 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet General Journal Debit Credit No 1. Date January 31 775 Rent Expense Prepaid Rent 775 2 January 31 4,900 Supplies Expense Supplies 4,900 3 January 31 4,025 Deferred Revenue Service Revenue 4,025 1 4 | January 31 5,030 Salaries Expense Salaries Payable 5,030 3. Prepare an adjusted trial balance as of January 31, 2021. Answer is complete and correct. Accounts Credit Cash Accounts Receivable DYNAMITE FIREWORKS Adjusted Trial Balance January 31, 2021 Debit $ 27,900 7,700 3,900 8,525 61,000 Supplies Prepaid Rent Land Accounts Payable Salaries Payable Deferred Revenue Common Stock Retained Earnings 3,800 5,030 775 76,000 16,100 30,625 Service Revenue Salaries Expense Supplies Expense Rent Expense 17,630 4,900 775 132,330 Totals $ $ 132,330 4. Prepare an income statement for the period ended January 31, 2021. DYNAMITE FIREWORKS Income Statement For the year ended January 31, 2021 Revenues: Service Revenue Expenses: Rent Expense Salaries Expense | $ 775 Total Expenses 775 Net Income 5. Prepare a classified balance sheet as of January 31, 2021. DYNAMITE FIREWORKS Balance Sheet January 31, 2021 Assets Liabilities Current assets: Current liabilities: Cash Accounts Receivable Supplies Prepaid Rent Total current liabilities Total current assets Stockholder's Equity Long-term assets: Total stockholders' equity Total assets Total liabilities and stockholders' equity 0 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Credit Debit 26,600 1 January 31, 2021 Service Revenue 2 January 31, 2021 Supplies Expense Rent Expense 7. Analyze the following features of Dynamite Fireworks' financial condition: a. What is the amount of profit reported for the month of January? Income statement b. Calculate the ratio of current assets to current liabilities at the end of January. Current ratio 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. Good BadStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started