On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $101,700 35,000 152,500 72,300 125,000 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 Totals $ 2,300 10,100 23,200 125,000 30,500 205,000 151,400 $517,000 $517,000 During January 2021, the following transactions occurred: January 1 Borrowed $105,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,029.94 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $105,000. The 5% bonds pay interest semiannually each June 30 and December 31. January 4 Received $31,500 from customers on accounts receivable. January 10 Paid cash on accounts payable, $16,000. January 15 Paid cash for salaries, $29,400. January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24,800. :2 At the end of January. $3.500 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 3% will not be collected. No accounts were written off as uncollectible in January 3. Unpaid salaries at the end of January are $26.600. 4. Accrued income taxes at the end of January are $5.500. Requirement General Journal General Ledger Trial Balance Income Statement 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, 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. ........ Requirement......... .....Generellowrnal........ January 1 Called the bonds at the contractual call price of $105,000. The 5% bonds pay interest semiannually each June 30 and December 31. January 4 Received $31,500 from customers on accounts receivable. January 10 Paid cash on accounts payable, $16,000. January 15 Paid cash for salaries, $29,400. January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24,800. 2. At the end of January, $3,500 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 3% will not be collected. No accounts were written off as uncollectible in January 3. Unpaid salaries at the end of January are $26.600. 4. Accrued income taxes at the end of January are $5.500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 14 > Borrowed $105,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,030 are required at the end of each month for 60 months. Note: Enter debits before credits. Date Account Title Debit Credit Jan 01 Record entry Clear entry View general journal Requirement General Ledger > January 10 Paid cash on accounts payable, $16,000. January 15 Paid cash for salaries, $29,400. January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24.800. 2. At the end of January. $3.500 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 3% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $26,600. 4. Accrued income taxes at the end of January are $5.500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted - General Ledger Account Cash Debit Accounts receivable Debit Credit No. Credit No Date Jan 01 Date Debit Credit No. B Balance 101,700 Date Jan 01 Balance 35,000 Inventory Allowance for uncollectible accounts Date Debit Credit Jan 01 No. Debit Credit Balance 2,300 Date Jan 01 Balance 152.500 Land Buildings Debit Credit No Debit Credit Date Jan 01 Balance 72,300 Date Jan 01 Balance 125.000 Accumulated depreciation Accounts payable No. Debit Credit Balance Debit Credit Date Jan 01 Date Jan 01 Balance 23.200 10,100 Bonds payable Debit | Credit Discount on bonds payable Debit Credit No. No. Date Jan 01 Balance 1 125,000 Date Jan 01 Balance 30.500 Common stock Retained earnings Debit Credit Debit Credit | No / Date Jan 01 Balance 205,000 Date Jan 01 Balance 151.400 During January 2021, the following transactions occurred: January 1 Borrowed $105,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,029.94 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $105,000. The 5% bonds pay interest semiannually each June 30 and December 31. January 4 Received $31,500 from customers on accounts receivable. January 10 Paid cash on accounts payable, $16,000. January 15 Paid cash for salaries, $29,400. January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24,800. 2. At the end of January, $3.500 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 3% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $26.600. 4. Accrued income taxes at the end of January are $5,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted - Freedom Fireworks Trial Balance January 31, 2021 Account Title Credit Debit 101,700 35,000 2.300 152,500 72,300 125,000 Cash Accounts receivable Allowance for uncollectible accounts Inventory Land Buildings Accumulated depreciation - Accounts payable Bonds payable Discount on bonds payable Common stock *Retained earnings Total 10,100 23,200 125,000 30,500 205,000 151,400 517,000 S 517,000 $ General Ledger Income Statement > During January 2021, the following transactions occurred: January 1 Borrowed $105,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,029.94 are required at the end of each month for 60 months. January 1 Called the bonds at the contractual call price of $105,000. The 5% bonds pay interest semiannually each June 30 and December 31. January 4 Received $31,500 from customers on accounts receivable. January 10 Paid cash on accounts payable, $16,000. January 15 Paid cash for salaries, $29,400. January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24.800. 2. At the end of January, $3,500 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 3% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $26.600. 4. Accrued income taxes at the end of January are $5,500. 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 complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection Unadjusted - Dates: Jan 01 to: Jan 31 Freedom Fireworks Multiple-Step Income Statement For the Month Ended January 31, 2021 Gross profit Total operating expenses Operating income During January 2021, the following transactions occurred: January 1 Borrowed $105,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,029.94 are required at the end of each for 60 months. January 1 Called the bonds at the contractual call price of $105,000. The 5% bonds pay interest semiannually each June 30 and December 31. 4 Received $31,500 from customers on accounts receivable. January 10 Paid cash on accounts payable, $16,000. January 15 Paid cash for salaries, $29,400. January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24.800. 2. At the end of January. $3,500 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 3% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $26.600. 4. Accrued income taxes at the end of January are $5.500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 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 - Dates: Jan 01 to: Jan 31 Freedom Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current assets: Current liabilities: Total current liabilities Long-term liabilities Total liabilities Total current assets Non-current assets: Stockholders' equity Total stockholders' equity Total liabilities & stockholders' equity Total assets January 30 Firework sales for the month totaled $196,000. Sales included $65,500 for cash and $130,500 on account. The cost of the units sold was $115,000. January 31 Paid the first monthly installment of $2,030 related to the $105,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. 1. 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 $24,800. 2. At the end of January, $3,500 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 3% will not be collected. No accounts were written off as uncollectible in January. 3. Unpaid salaries at the end of January are $26,600. 4. Accrued income taxes at the end of January are $5,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimal place.) Dates: Jan 01 to: Jan 31 Analyze the following for Freedom Fireworks: (a) Calculate the debt to equity ratio. If the average debt to equity ratio for the industry is 1.0, is Freedom Fireworks more or less leveraged than other companies in the same industry? The debt to equity ratio is: Is the company more or less leveraged than other companies? (b) Calculate the times interest earned ratio. If the average times interest earned ratio for the industry is 18 times, is the company more or less able to meet interest payments than other companies in the same industry? The times interest earned ratio is: Is the company more or less able to meet interest payments than other companies? Based on the debt to equity ratio and the times interest earned ratio, ratio, Freedom Fireworks would more likely receive a higher or lower interest rate than the average borrowing rate in the industry? Balance Shoot