On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	26,700
Accounts Receivable		49,400
Allowance for Uncollectible Accounts				$	5,800
Inventory		21,600
Land		62,000
Equipment		23,000
Accumulated Depreciation					3,100
Accounts Payable					30,100
Notes Payable (6%, due April 1, 2019)					66,000
Common Stock					51,000
Retained Earnings					26,700
Totals	$	182,700		$	182,700

During January 2018, the following transactions occur: January 2. Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $163,000. January 15. Firework sales for the first half of the month total $151,000. All of these sales are on account. The cost of the units sold is $81,800. January 23. Receive $127,000 from customers on accounts receivable. January 25. Pay $106,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $6,400. January 30. Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500. January 31. Pay cash for monthly salaries, $53,600.

1. record each of the transactions listed above.

part two: 1. 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 residual value of $5,000 and a two-year service life.

2. At the end of January, $27,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $14,600. 5. By the end of January, $4,600 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions.

3. Prepare an adjusted trial balance as of January 31, 2018.

4. Prepare a multiple-step income statement for the period ended January 31, 2018.

5. Prepare a classified balance sheet as of January 31, 2018.

6. Record closing entries.

7. Analyze the following for ACME Fireworks

Requirement 1:

a-1. Calculate the current ratio at the end of January.

a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average?

Requirement 2:

b-1. Calculate the acid-test ratio at the end of January.

b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)?

Requirement 3:

c-1. Assume the notes payable were due on April 1, 2018, rather than April 1, 2019. Calculate the revised current ratio at the end of January.

c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged.