On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	58,700
Accounts Receivable		25,000
Allowance for Uncollectible Accounts					$	2,200
Inventory		36,300
Notes Receivable (5%, due in 2 years)		12,000
Land		155,000
Accounts Payable						14,800
Common Stock						220,000
Retained Earnings						50,000
Totals	$	287,000			$	287,000

During January 2021, the following transactions occur:

January		1		Purchase equipment for $19,500. The company estimates a residual value of $1,500 and a five-year service life.
January		4		Pay cash on accounts payable, $9,500.
January		8		Purchase additional inventory on account, $82,900.
January		15		Receive cash on accounts receivable, $22,000.
January		19		Pay cash for salaries, $29,800.
January		28		Pay cash for January utilities, $16,500.
January		30		Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $3,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $32,600.
5. Accrued income taxes at the end of January are $9,000.

4. Prepare a multiple-step income statement for the period ended January 31, 2021. TNT FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2021 $ 0 Expenses Total Operating Expenses 0 0 0 $ 0