On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occur: January 1 Borrow $101,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $1,953 are required at the end of each month for 60 months. January 4 Receive $31,100 from customers on accounts receivable. January 10 Pay cash on accounts payable, $12,000. January 15 Pay cash for salaries, $29,000. January 30 Firework sales for the month total $195,200. The cost of the units sold is $113,000. January 31 Pay the first monthly installment of $1,953 related to the $101,000 borrowed on January 1 . The following information is available on January 31, 2024. a. 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 $24,400. b. The company estimates additional future uncollectible accounts of $2,252. c. Unpaid salaries at the end of January are $26,200. d. Accrued income taxes at the end of January are $8,100. e. The portion of Notes Payable (long-term) due within the next 12 months is reclassified as Notes Payable (current). The amount of the reclassification is $17,946. Answer is not complete. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 7 ) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 8 to 12). 3. Review the adjusted 'Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step 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 13 and 14). \begin{tabular}{|c|c|c|c|c|c|} \hline 6 & January 30 & Cost of Goods Sold & 2 & 113,000 & \\ \hline & & Inventory & 2 & & 113,000 \\ \hline \multirow[t]{3}{*}{7} & January 31 & Notes Payable (Long-term) & & 0 & \\ \hline & & Interest Expense & 2 & 0 & \\ \hline & & Cash & 2 & & 1,953 \\ \hline \multirow[t]{2}{*}{8} & January 31 & Depreciation Expense & 2 & 855 & \\ \hline & & Accumulated Depreciation & 2 & & 855 \\ \hline \multirow[t]{2}{*}{9} & January 31 & Bad Debt Expense & 2 & 2,252 & \\ \hline & & Allowance for Uncollectible Accounts & 2 & & 2,252 \\ \hline \multirow[t]{2}{*}{10} & January 31 & Salaries Expense & 2 & 26,200 & \\ \hline & & Salaries Payable & 2 & & 26,200 \\ \hline \multirow[t]{2}{*}{11} & January 31 & Income Tax Expense & 2 & 8,100 & \\ \hline & & Income Tax Payable & 2 & & 8,100 \\ \hline \multirow[t]{2}{*}{12} & January 31 & Notes Payable (Long-term) & 2 & 0 & \\ \hline & & Notes Payable (Current) & 2 & & 0 \\ \hline 13 & January 31 & No Transaction Recorded & & & \\ \hline \end{tabular} Requirement General Ledger Iger Account \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Salaries Payable } \\ \hline No. & Date & Debit & \multicolumn{1}{|c|}{ Credit } & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline10 & January 31 & & 26,200 & 26,200 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{7}{|c|}{ Income Tax Payable } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline11 & January 31 & & 8,100 & 8,100 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Notes Payable (Long-term) } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline1 & January 01 & & 101,000 & 101,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common Stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 201,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained Earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 155,500 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|r|r|} \hline \multicolumn{5}{|c|}{ Sales Revenue } \\ No. & Date & Debit & \multicolumn{1}{|c|}{ Credit } & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline5 & January 30 & & 195,200 & 195,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Cost of Goods Sold } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline 6 & January 30 & 113,000 & & 113,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline A 8 & January 31 & 855 & & 855 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline \$ 4 & January 15 & 29,000 & & 29,000 \\ \hline A 10 & January 31 & 26,200 & & 55,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Bad Debt Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline A 9 & January 31 & 2,252 & & 2,252 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained Earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 155,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sales Revenue } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline A 5 & January 30 & & 195,200 & 195,200 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Cost of Goods Sold } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline & & & & 113,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline & January 31 & 855 & & 855 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline \$ 4 & January 15 & 29,000 & & 29,000 \\ \hline A 10 & January 31 & 26,200 & & 55,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Bad Debt Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline \$ 9 & January 31 & 2,252 & & 2,252 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Income Tax Expense } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline11 & January 31 & 8,100 & & 8,100 \\ \hline \end{tabular} General Journal Trial Balance \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Freedom Fireworks } \\ \hline \multicolumn{4}{|c|}{ Trial Balance } \\ \hline \multicolumn{4}{|c|}{ January 31,2023} \\ \hline Account Title & & & Credit \\ \hline Cash & $ & 165,547 & \\ \hline AAccountsReceivable & & 133,200 & \\ \hline NAllowanceforUncollectibleAccounts & & & 4,152 \\ \hline Inventory & & 39,100 & \\ \hline Land & & 68,300 & \\ \hline ABuildings & & 121,000 & \\ \hline AccumulatedDepreciation & & & 10,555 \\ \hline Accounts Payable & & & 6,800 \\ \hline - Salaries Payable & & & 26,200 \\ \hline AIncomeTaxPayable & & & 8,100 \\ \hline FNotesPayable(Long-term) & & & 101,000 \\ \hline CommonStock & & & 201,000 \\ \hline NRetainedEarnings & & & 155,500 \\ \hline NSalesRevenue & & & 195,200 \\ \hline NCostofGoodsSold & & 113,000 & \\ \hline Depreciation Expense & & 855 & \\ \hline * Salaries Expense & & 55,200 & \\ \hline BadDebtExpense & & 2,252 & \\ \hline AIncomeTaxExpense & & 8,100 & \\ \hline Total & $ & 706,554 & 708,507 \\ \hline \end{tabular} Adjusted \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Freedom Fireworks } \\ \hline \multicolumn{5}{|c|}{ Multiple-Step Income Statement } \\ \hline \multicolumn{5}{|c|}{ For the Month Ended January 31, 2024} \\ \hline Sales Revenue & 2$ & 195,200 & & \\ \hline Cost of Goods Sold & 2 & (113,000) & & \\ \hline Gross Profit & & & $ & 82,200 \\ \hline Salaries Expense & 2 & 55,200 & & \\ \hline Depreciation Expense & 2 & 855 & & \\ \hline Bad Debt Expense & 2 & 2,252 & & \\ \hline Total Operating Expense & & & & 58,307 \\ \hline Operating Income & & & & 23,893 \\ \hline Interest Expense & 2 & & & 0 \\ \hline Income Before Taxes & & & & 23,893 \\ \hline Income Tax Expense & 2 & & & 8,100 \\ \hline Net Income & 2 & & $ & 15,793 \\ \hline \end{tabular} Adjusted \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Freedom Fireworks } \\ \hline \multicolumn{5}{|c|}{ Classified Balance Sheet } \\ \hline \multicolumn{5}{|c|}{ January 31, 2024} \\ \hline \multicolumn{2}{|l|}{ Assets } & \multicolumn{3}{|l|}{ Liabilities } \\ \hline Current Assets: & & Current Liabilities: & & \\ \hline Cash & (2) 165,547 & Accounts Payable & 2$ & 6,800 \\ \hline Accounts Receivable & ($133,200 & Interest Payable & & 0 \\ \hline Allowance for Uncollectible Accounts & (4,152) & Income Tax Payable & 2+ & 8,100 \\ \hline \multirow[t]{4}{*}{ Inventory } & ($)39,100 & Deferred Revenue & & 0 \\ \hline & & Total Current Liabilities & & 14,900 \\ \hline & & Long-term Liabilities & & \\ \hline & & Notes Payable (Long-term) & 2 & 101,000 \\ \hline Total Current Assets & 333,695 & Total Liabilities & & 115,900 \\ \hline \multirow[t]{2}{*}{ Noncurrent Assets: } & & \multicolumn{3}{|c|}{ Stockholders' Equity } \\ \hline & & Common Stock & & 201,000 \\ \hline Land & 68,300 & Retained Earnings & 2 & 171,293 \\ \hline Equipment & & Inventory & x & - 39,100 \\ \hline \multirow[t]{2}{*}{ Accumulated Depreciation } & (10,555) & & & \\ \hline & & Total Stockholders' Equity & & 411,393 \\ \hline Total Assets & $391,440 & Total Liabilities \& Stockholders' Equity & $ & $527,293 \\ \hline \end{tabular} Income Statement Balance Sheet Journal entry worksheet Pay the first monthly installment of $1,953 related to the $101,000 borrowed on January 1. Note: Enter debits before credits. Journal entry worksheet 1 2 3 4 5 6 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 $24,400. Record the adjusting journal entry for depreciation for the month. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the revenue accounts. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense accounts. Note: Enter debits before credits