On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances AccountsDebitCreditCash$ 24,300Accounts Receivable5,700Supplies3,600Land55,000Accounts Payable$ 3,700Common Stock70,000Retained Earnings14,900Totals$ 88,600$ 88,600 During January 2024, the following transactions occur January 2Purchase rental space for one year in advance, $7,500 ($625 per month) January 9Purchase additional supplies on account, $4,000 January 13Provide services to customers on account, $26,000 January 17Receive cash in advance from customers for services to be provided in the future, $4,200 January 20Pay cash for salaries, $12,000 January 22Receive cash on accounts receivable, $24,600 January 29Pay cash on accounts payable, $4,500 The following information is available on January 31 Rent for the month of January has expired Supplies remaining at the end of January total $3,300 By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17 Unpaid salaries at the end of January are $5,450 1 Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 7) Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances 2 Record the adjusting entries in the 'General Journal' tab (these are shown as items 8 to 11) 3 Review the adjusted 'Trial Balance' as of January 31, 2024 4 Prepare an income statement for the period ended January 31, 2024, in the 'Income Statement' tab 5 Prepare a classified balance sheet as of January 31, 2024 in the 'Balance Sheet' tab 6 Record the closing entries in the 'General Journal' tab (these are shown as items 12 and 13) 7 Using the information from the requirements above, complete the 'Analysis' tab Analysis A what is the amount of profit reported for the month of January b calculate the ratio of current assets to current liability (the current ratio) at the end of January c based on dynamite firework 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 Aug 04, 2024

On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: AccountsDebitCreditCash$ 24,300Accounts Receivable5,700Supplies3,600Land55,000Accounts Payable$ 3,700Common Stock70,000Retained Earnings14,900Totals$ 88,600$ 88,600 During

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

AccountsDebitCreditCash$ 24,300Accounts Receivable5,700Supplies3,600Land55,000Accounts Payable$ 3,700Common Stock70,000Retained Earnings14,900Totals$ 88,600$ 88,600

During January 2024, the following transactions occur:

January 2Purchase rental space for one year in advance, $7,500 ($625 per month).January 9Purchase additional supplies on account, $4,000.January 13Provide services to customers on account, $26,000.January 17Receive cash in advance from customers for services to be provided in the future, $4,200.January 20Pay cash for salaries, $12,000.January 22Receive cash on accounts receivable, $24,600.January 29Pay cash on accounts payable, $4,500.

The following information is available on January 31.

Rent for the month of January has expired.
Supplies remaining at the end of January total $3,300.
By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17.
Unpaid salaries at the end of January are $5,450.

1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 7). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 8 to 11).

3. Review the adjusted 'Trial Balance' as of January 31, 2024.

4. Prepare an income statement for the period ended January 31, 2024, in the 'Income Statement' tab.

5. Prepare a classified balance sheet as of January 31, 2024 in the 'Balance Sheet' tab.

6. Record the closing entries in the 'General Journal' tab (these are shown as items 12 and 13).

7. Using the information from the requirements above, complete the 'Analysis' tab.

Analysis:

A. what is the amount of profit reported for the month of January

b. calculate the ratio of current assets to current liability (the current ratio) at the end of January

c. based on dynamite firework profit and ratio of current assets to current liabilities, indicate whether dynamite fireworks appears to be in good or bad financial condition?