On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:

Required information [The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Credit Debit $ 25,400 46,800 $ 4,500 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals 20,300 49,000 16,500 1,800 28,800 53,000 38,000 31,900 $158,000 $ 158,000 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,600. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $150,000. y 15 Firework sales for the first half of the month total $138,000. All of these sales are on account. The cost of the units sold is $ 75,300. January 23 Receive $125,700 from customers on accounts receivable. January 25 Pay $ 93,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, January 30 Firework sales for the second half of the month total $146,000. Sales include $18,000 for cash and $128,000 on account. The cost of the units sold is $81,000. January 31 Pay cash for monthly salaries, $52,300. 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Land Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings mnings Interest Payable Interest Expense Sales Revenue Cost of Goods Sold Salaries Expense Bad Debt Expense Depreciation Expense Interest Expense Income Tax Expense Totals $ 0 $ 0 4. Prepare a multiple-step income statement for the period ended January 31, 2021. ACME FIREWORKS Income Statement For the year ended January 31, 2021 Sales Revenue Cost of Goods Sold Gross Profit Salaries Expense Bad Debt Expense Depreciation Expense Depreciation Expense $ Total operating expenses Operating Income Income Before Taxes Income Tax Expense Net Income 5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) ACME FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities Less: Allowance for Uncollectible Accounts Total Current Assets 0 Total Current Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets 0 $ 0 w Lund x 1 Record the closing entry for revenue accounts. 2 Record the closing entry for expense accounts. 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January. Current Ratio - Choose Denominator = Choose Numerator Curr Current Ratio Current Ratio a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? More liquid Less liquid Requirement 2: b-1. Calculate the acid-test ratio at the end of January. Acid-test Ratio + Choose Denominator = Choose Numerator Acid-test Ratio Current Ratio - Choose Denominator = Choose Numerator Current Ratio Current Ratio a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? O More liquid Less liquid