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

Accounts	Debit			Credit
Cash	$	25,500
Accounts Receivable		47,000
Allowance for Uncollectible Accounts				$	4,600
Inventory		20,400
Land		50,000
Equipment		17,000
Accumulated Depreciation					1,900
Accounts Payable					28,900
Notes Payable (6%, due April 1, 2019)					54,000
Common Stock					39,000
Retained Earnings					31,500
Totals	$	159,900		$	159,900

During January 2018, the following transactions occur: January 2. Sold gift cards totaling $8,800. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $151,000. January 15. Firework sales for the first half of the month total $139,000. All of these sales are on account. The cost of the units sold is $75,800. January 23. Receive $125,800 from customers on accounts receivable. January 25. Pay $94,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $5,200. January 30. Firework sales for the second half of the month total $147,000. Sales include $12,000 for cash and $135,000 on account. The cost of the units sold is $81,500. January 31. Pay cash for monthly salaries, $52,400.

1.

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1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

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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 $3,800 and a two-year service life. 2. At the end of January, $15,000 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 3% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $13,400. 5. By the end of January, $3,400 of the gift cards sold on January 2 have been redeemed. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3.

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

4.

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

5.

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5. Prepare a classified balance sheet as of January 31, 2018. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.)

6.

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6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)