On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 25,280 6,600 4,500 64,000 ok $ 4,600 79,000 16,700 $100, 300 nt $100,300 ences During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $10,200 ($850/month). January 9 Purchase additional supplies on account, $4,900. January 13 Provide services to customers on account, $26,900. January 17 Receive cash in advance from customers for services to be provided in the future, $5,100. January 20 Pay cash for salaries, $12,900. January 22 Receive cash on accounts receivable, $25,500. January 29 Pay cash on accounts payable, $5,400. The following information is available on January 31. Rent for the month of January has expired. Supplies remaining at the end of January total $4,200. . By the end of January, $4,250 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $4.820. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to co company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each accou selection. Unadjusted Dynamite Fireworks Income Statement For the year ended January 31, 2021 Revenues Service Revenue $ 26,900 26,900 Total Revenue Expenses Salaries Expense 2 12,900 Total Expenses Net Income 12,900 14,000 $ Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Assets Current Assets Cash Supplies Accounts Receivable Dynamite Fireworks Balance Sheet January 31, 2021 Liabilities Current Liabilities 7,200 Accounts Payable 9,400 Deferred Revenue 33,500 s $ 9,500 5,100 Total Current Liabilities 14,600 50,100 Total Liabilities 14,600 Total Current Assets Long-term Assets Land Stockholders' Equity 64,000 Common Stock Retained Earnings 79,000 30,700 0 109,700 124,300 Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ Total Assets $ 114,100 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis' tab. Analyze the following features of Dynamite Fireworks financial condition: (a) What is the amount of profit reported for the month of January? The amount of profit reported for the month of January is (b) Calculate the ratio of current assets to current liabilities at the end of January The ratio of current assets to current liabilities at the end of January is (c) Based on Dynamite Fireworks' profit and ratio of current assets to current liabilities, indicate whether Dynamite Fireworks appears to be in good or bad financial condition Does the company appears to be in good or bad financial condition?
