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

During January $2024,$ the following transactions occur:

January $2$ Purchase rental space for one year in advance, $$6,600($$$550/$month$).$

January $9$ Purchase additional supplies on account, $$3,700.$

January $13$ Provide services to customers on account, $$25,700.$

January $17$ Receive cash in advance from customers for services to be provided in the future, $$3,900.$

January $20$ Pay cash for salaries, $$11,700.$

January $22$ Receive cash on accounts receivable, $$24,300.$

January $29$ Pay cash on accounts payable, $$4,200.$

Required:

Record each of the transactions listed above.

Record the adjusting entries on January $31.$

Rent for the month of January has expired.

Supplies remaining at the end of January total $$3,000.$ All other supplies have been used.

By the end of January, $$3,350$ of services has been provided to customers who paid in advance on January $17.$

Unpaid salaries at the eryd of January are $$5,660.$

Prepare an adjusted trial balance as of January $31,2024.$

Prepare an income statement for the period ended January $31,2024.$

Prepare a classified balance sheet as of January $31,2024.$

Record closing entries.

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.

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