On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 102,500 Accounts Receivable 36,600 Inventory 153,300 Land 80,300 Buildings 133,000 Allowance for Uncollectible Accounts $ 3,100 Accumulated Depreciation 10,900 Accounts Payable 32,000 Bonds Payable 133,000 Discount on Bonds Payable 31,300 Common Stock 213,000 Retained Earnings 145,000 Totals $ 537,000 $ 537,000 During January 2021, the following transactions occurred: January 1 Borrowed $113,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,184.61 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $113,000. The 6% bonds pay interest semiannually each June 30 and December 31. January 4 Received $32,300 from customers on accounts receivable. January 10 Paid cash on accounts payable, $24,000. January 15 Paid cash for salaries, $30,200. January 30 Firework sales for the month totaled $201,200. Sales included $66,300 for cash and $134,900 on account. The cost of the units sold was $119,000. January 31 Paid the first monthly installment of $2,185 related to the $113,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. Depreciation on the building 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 $26,800. At the end of January, $4,300 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. Unpaid salaries at the end of January are $27,400. Accrued income taxes at the end of January are $6,300.

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, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 13-14). 7. Using the information from the requirements above, complete the 'Analysis' tab.