Required:

1. Prepare a multiple-step income statement for the period ended January 31, Year 1.

2. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a minus sign.)

3. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 59,200 26,000 36,800 18,000 160,000 $300,000 During January Year 1, the following transactions occur. January 4 Pay cash on accounts payable, $10,000. Credit $ 2,700 January 1 Purchase equipment for $20,000. The company estimates a residual value of $2,000 and a four-year service life. January 19 Pay cash for salaries, $30,300. January 28 Pay cash for January utilities, $17,000. 15 300 225,000 57,000 $300,000 January Purchase additional inventory on account, $87,900. January 15 Receive cash on accounts receivable, $22,500. January 30 Sales for January total $225,000. All of these sales are on account. The coat of the units sold in $117,500. Information for adjusting entries: