On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $102,600 36,820 153,400 81,300 134,000 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 $ 3,200 11,000 33, 100 134,000 31,400 214,000 144,200 $539,500 $539,500 During January 2021, the following transactions occurred: January 1 Borrowed $114,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,151.32 are required at the end of each month for 6 months. January 1 Called the bonds at the contractual call price of $114, eee. The 7% bonds pay interest semiannually each June 30 and December 31. January 4 Received $32,400 from customers on accounts receivable. January 10 Paid cash on accounts payable, $25,eee. January 15 Paid cash for salaries, $30,38e. January 30 Firework sales for the month totaled $221, 4ee. Sales included $66,400 for cash and $135,eee on account. The cost of the units sold was $119,500. January 31 Paid the first monthly installment of $2,151 related to the $114,000 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 $25,400 2. At the end of January $4.400 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 3. Unpaid salaries at the end of January are $27500 4. Accrued income taxes at the end of January are $6.400. 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 requir in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 ..... 14 Borrowed $114,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,151 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 Unadjusted General Ledger Account Accounts Cash Debit Date Credit Debit Credit Balance 102.500 Balance 36.800 Jan 01 Inventory Allowance for uncollectible accounts Date Debit Credit Jan 01 Balance Debit Credit Balance Date JO Land Buildings Debit Debit Credit Balance Credit Date Jan 01 Data Jan 01 Balance 134000 Accumulated depreciation Accounts payable Debit Credit Balance Date Debit Cret a ce Date Jan 01 To 1 Bonds payable Debit Discount on bonds payable Debit Credit Credit Date no Balance 31 400 Common stock Debit Credit Retained earings Debit Credit Balance Date Jan 01 Balance 44200 Unadjusted - Freedom Fireworks Trial Balance January 31, 2021 Account Title Credit S cash Accounts receivable Allowance for uncollectible accounts Debit 102 600 36,800 Divery Land 81,300 134 000 Accumulated depreciation Accounts payable onds payable Discount on boods payable 11.000 33,100 134 000 214,000 C on stock Retained Gamings 15 539 500 Geceleden Income Statement > 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, alances will appear for each account, based on you selection Income Statement 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 The Unsajusted, adjusted, or post-closing balances will appear for each account, based on your selection prope ULLUIS U Lumplete the company's balance sheet. 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 timli Total current assets Non current assets Total abilities Stockholders' equity UNT Totalassot Total stockholders' equity Totallibilities & stockholders' equity (Income Statement Analysis > Analyze the following for Freedom Fireworks: (a) Calculate the debt to equity ratio. If the average debt to equity ratio for the industry is 10 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 loveraged than other companies? (b) Calculate the times interest earned ratio If the average times interesteamed ratio for the industry is 20 times, is the company more or less able to most interest payments than other companies in the IT industry The times interest mod ratio is Is the company more or less able to meet interest payments than other companies? Based on the debt to quity ratio and the ones interest warned aborto, Freedom Foworks would more likely rooiva higher or lower interest rate than the age borrowing rate in the industry?