On January 1, 2018, the general ledger of Freedom Fireworks Includes the following account balances: Debit 182,288 36,888 153,888 77,308 13e,888 Credit Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Bonds Payable Discount on Bonds Payable Common Stock Retained Earnings $ 2,8e8 18,688 28,788 13e,888 31,888 21e,888 147,488 529,588 529,5e8 Totals During January 2018, the following transactions occur: January 1 Borrow $110,eee from captive credit Corporation. The installment note bears interest at 6% annually and matures in 5 January 1 Called the bonds at the contractual call price of $110,00. The 6% bonds pay interest semiannually each June 3e and years. Payments of $2,880 are required at the end of each month for 6e months December 31 January 4 Receive $32,880 from customers on accounts receivable January 18 Pay cash on accounts payable, $21,880 January 15 Pay cash for salaries, $29,98e January 38 Firework sales for the month total $288,68. Sales include $66,800 for cash and $134,68e on account. The cost of the units sold is $117,588 anuary 31 Pay the first monthly installment of $2,888 related to the $i1e,888 borrowed on January 1. Round your interest calculation to the nearest dol1ar The followWIng Information is avallable on January 31, 2018 a. Depreclation on the bullding for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $25,000. b. At the end of January. $4,000 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. No accounts were written off as uncollectible In January C. Unpaid salaries at the end of January are $27100. d. Accrued Income taxes at the end of January are $6,000 General Journal GeneralTrial Balance Statement Ledger Requirement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances 2. Record adjusting entries on January 31. in the 'General Journal tab (these are shown as items 9-12). 3. Review the adjusted 'Trial Balance' as of January 31, 2018, in the Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2018, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2018, in the 'Balance Sheet' tab 6. Record the closing entries in the 'General Journal tab (these are shown as items 13-15) 7. Using the information from the requirements above, complete the 'Analysis' tab
