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

Accounts	Debit			Credit
Cash	$	25,100
Accounts Receivable		46,200
Allowance for Uncollectible Accounts				$	4,200
Inventory		20,000
Land		46,000
Equipment		15,000
Accumulated Depreciation					1,500
Accounts Payable					28,500
Notes Payable (6%, due April 1, 2019)					50,000
Common Stock					35,000
Retained Earnings					33,100
Totals	$	152,300		$	152,300

During January 2018, the following transactions occur: January 2. Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $147,000. January 15. Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23. Receive $125,400 from customers on accounts receivable. January 25. Pay $90,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $4,800. January 30. Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $132,000 on account. The cost of the units sold is $79,500. January 31. Pay cash for monthly salaries, $52,000.

1. Record each of the transactions listed above.

2.1. 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 $3,000 and a two-year service life. 2. The company estimates future uncollectible accounts. The company determines $11,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $13,000. 5. By the end of January, $3,000 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.Calculate the current ratio at the end of January.

7b.Calculate the acid-test ratio at the end of January.

7c.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.