On January $1,2024,$ the general ledger of Freedom Fireworks includes the following account balances: Record each of the transactions listed above in the 'General Journal' tab $($these are shown as items $1-10)$ assuming a FIFO

perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions

on the account balances.

Record adjusting entries on January $31$ in the 'General Journal' tab $($these are shown as items $11-14).$

Review the adjusted 'Trial Balance' as of January $31,2024,$ in the 'Trial Balance' tab.

Prepare a multiple$-$step income statement for the period ended January $31,2024,$ in the 'Income statement' tab.

Prepare a classified balance sheet as of January $31,2024,$ in the 'Balance Sheet' tab.

Record the closing entries in the 'General Journal' tab $($these are shown as items $15$ and $16).$

Using the information from the requirements above, complete the 'Analysis' tab. Prepare the journal entries for transactions.

Note: If no entry is required for a particular transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Issue an additional $2,000$ shares of $$1$ par value common stock for $$40,000.$

Note: Enter debits before credits. Notice the dropdown below that gives the options to select the unadjusted, adjusted or post$-$closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs$.$

Freedom Fireworks

Trial Balance

January $31,2024$

$\backslash$table$[[$Account Title,Debit,Credit$],[$$$,44,300],[$A$\_($Accounts receivable $),,47,700,],[\backslash$Phi $\_($Supplies $),,9,100,],[$Equipment$,,80,000,],[$Accumulated depreciation,,,$10,600],[$Accounts payable,,,$16,200],[\backslash$Phi $\_($Common stock $),,,16,000],[$$$\_($Paid$-$in capital$-$excess of par $),,,96,000],[**\_($Retained earnings $),,,42,300],[$Total$,$$$,181,100,181,100]]$Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post$-$closing balances will

appear for each account, based on your selection.

Unadjusted

General Ledger Account

Retained earnings

During January $2024,$ the following transactions occur:

January $2$ Issue an additional $2,000$ shares of $$1$ par value common stock for $$40,000.$

January $9$ Provide services to customers on account, $$18,800.$

January $10$ Purchase additional supplies on account, $$6,500.$

January $12$ Repurchase $1,100$ shares of treasury stock for $$19$ per share.

January $15$ Pay cash on accounts payable, $$18,100.$

January $21$ Provide services to customers for cash, $$50,700.$

January $22$ Receive cash on accounts receivable, $$18,200.$

January $29$ Declare a cash dividend of $$0\mathrm{.}20$ per share to all shares outstanding on January $29.$ The dividend is payable on February

$($Hint: Freedom Fireworks had $16,000$ shares outstanding on January $1,2024,$ and dividends are not paid on treasury

stock.$)$

January $30$ Reissue $700$ shares of treasury stock for $$21$ per share.

January $31$ Pay cash for salaries during January, $$43,600.$

The following information is available on January $31,2024.$

Unpaid utilities for the month of January are $$7,800.$

Supplies at the end of January total $$6,700.$

Depreciation on the equipment for the month of January is calculated using the straight$-$line method. At the time the equipment

was purchased, the company estimated a service life of three years and a residual value of $$11,600.$

Accrued income taxes at the end of January are $$2,700.$