On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances Accounts Debit Credit Cash $23,900 Accounts Receivable 5,300 Supplies 3,200 Land 51,000 Accounts Payable $3,300 Common Stock 66,000 Retained Earnings 14,100 Totals $83,400 $83,400 During January 2024, the following transactions occur January 2 Purchase rental space for one year in advance, $6,300 ($525 month) January 9 Purchase additional supplies on account, $3,600 January 13 Provide services to customers on account, $25,600 January 17 Receive cash in advance from customers for services to be provided in the future, $3,800 January 20 Pay cash for salaries, $11,600 January 22 Receive cash on accounts receivable, $24,200 January 29 Pay cash on accounts payable, $4,100 Required 1 Record each of the transactions listed above 2 Record the adjusting entries on January 31 Rent for the month of January has expired Supplies remaining at the end of January total $2,900 All other supplies have been used By the end of January, $3,275 of services has been provided to customers who paid in advance on January 17 Unpaid salaries at the end of January are $5,730 3 Prepare an adjusted trial balance as of January 31, 2024 4 Prepare an income statement for the period ended January 31, 2024 5 Prepare a classified balance sheet as of January 31, 2024 6 Record closing entries 7 Analyze the following features of Dynamite Fireworks financial condition What is the amount of profit reported for the month of January Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January Based on Dynamite Fireworks profit and ratio of current assets to current liabilities, indicate whether Dynamite Fireworks appears to be in good or bad financial condition

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Posted on Sep 19, 2024

On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $23,900 Accounts Receivable 5,300 Supplies 3,200

On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances:

Accounts	Debit	Credit
Cash	$23,900
Accounts Receivable	5,300
Supplies	3,200
Land	51,000
Accounts Payable		$3,300
Common Stock		66,000
Retained Earnings		14,100
Totals	$83,400	$83,400

During January 2024, the following transactions occur:

January 2	Purchase rental space for one year in advance, $6,300 ($525/month).
January 9	Purchase additional supplies on account, $3,600.
January 13	Provide services to customers on account, $25,600.
January 17	Receive cash in advance from customers for services to be provided in the future, $3,800.
January 20	Pay cash for salaries, $11,600.
January 22	Receive cash on accounts receivable, $24,200.
January 29	Pay cash on accounts payable, $4,100.

Required: 1. Record each of the transactions listed above. 2. Record the adjusting entries on January 31.

Rent for the month of January has expired.
Supplies remaining at the end of January total $2,900. All other supplies have been used.
By the end of January, $3,275 of services has been provided to customers who paid in advance on January 17.
Unpaid salaries at the end of January are $5,730.

3. Prepare an adjusted trial balance as of January 31, 2024. 4. Prepare an income statement for the period ended January 31, 2024. 5. Prepare a classified balance sheet as of January 31, 2024. 6. Record closing entries. 7. Analyze the following features of Dynamite Fireworks financial condition:

What is the amount of profit reported for the month of January?
Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January.
Based on Dynamite Fireworks profit and ratio of current assets to current liabilities, indicate whether Dynamite Fireworks appears to be in good or bad financial condition.