On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 12,200 Accounts Receivable 36,000 Inventory 153,000 Land 77,300 Buildings 130,000 Allowance for Uncollectible Accounts $ 2,800 Accumulated Depreciation 10,600 Accounts Payable 28,700 Common Stock 210,000 Retained Earnings 156,400 Totals $ 408,500 $ 408,500 During January 2021, the following transactions occur: January 1 Borrow $110,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,127 are required at the end of each month for 60 months. January 4 Receive $32,000 from customers on accounts receivable. January 10 Pay cash on accounts payable, $21,000. January 15 Pay cash for salaries, $29,900. January 30 Firework sales for the month total $200,600. Sales include $66,000 for cash and $134,600 on account. The cost of the units sold is $117,500. January 31 Pay the first monthly installment of $2,127 related to the $110,000 borrowed on January 1. Round your interest calculation to the nearest dollar.

Prepare a multiple-step income statement for the period ended January 31, 2021.

Prepare a classified balance sheet as of January 31, 2021. (Hint: The carrying value of notes payable on January 31, 2021 is $108,423; $19,546 is reported as notes payable in the current liabilities section and $88,877 is reported as notes payable in the long-term liabilities section ($19,546 + $88,877 = $108,423). (Amounts to be deducted should be indicated with a minus sign.)