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

Accounts Debit Credit

Cash $$24,700$

Accounts Receivable $6,100$

Supplies $4,000$

Land $59,000$

Accounts Payable $$4,100$

Common Stock $74,000$

Retained Earnings $15,700$

Totals $$93,800$ $$93,800$

During January $2024,$ the following transactions occur:

January $2$ Purchase rental space for one year in advance, $$8,700($$$725/$month$).$

January $9$ Purchase additional supplies on account, $$4,400.$

January $13$ Provide services to customers on account, $$26,400.$

January $17$ Receive cash in advance from customers for services to be provided in the future, $$4,600.$

January $20$ Pay cash for salaries, $$12,400.$

January $22$ Receive cash on accounts receivable, $$25,000.$

January $29$ Pay cash on accounts payable, $$4,900.$

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 $$3,700.$ All other supplies have been used.

By the end of January, $$3,875$ of services has been provided to customers who paid in advance on January $17.$

Unpaid salaries at the end of January are $$5,170.$

$3.$ 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.