On January 1,2024, the general ledger of ACME Fireworks includes the following account bolances: During January 2024 , the followng transactions occur: sald is Mig, loe, The coet of the enlits veld is $97,504. The following information is avaltable on January 31. a. Depreciption on the eguigmeat for the month of January is cakculated using the straightine thethod At the time the equipment was purctused, the compary ertimsted a sesidual value of $5,000 and a two-year service ide. b. The company records an adjusting ently for $16.140 for estinated fubure uncollectible accounts c. The contany has accrived interest on notes payabie for Jarnary. d. The company thas acciued income taxes at the end of January of $14.600 e. By the end of January. $4.600 of the gift cards sold on Jarnary 2 have been tedeemed perore cost of poods said). 1 Record sale of gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date." 2 Record purchase of additional inventory on account. $163,000. 3 Record firework sales for the first haif of the month totaling $151,000, All of these sales are on account. 4 Firework sales for the first half of the month total $151,000. The cost of the units sold is $81,800. Record the cost of the units sold. 5 Record receipt of $127,000 from customers on accounts receivable. 6 Record payment of $106,000 to inventory suppliers on accounts payable. 7 Record write-off of accounts receivable as uncollectible, $6,400. 8 Record firework sales for the second half of the month totaling $159,000. Sales include $13,000 for cash and $146,000 on account. 9 Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500. Record the cost of the units sold. 10 Record payment of cash for monthly salaries, $53,600. 11 Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $5,000 and a two-year service life. Record the adjusting entry for depreclation. 12 The company records an adjusting entry for $16,140 for estimated future uncollectible accounts. 12 The company records an adjusting entry for $16,140 for estimated future uncollectible accounts. 13 The company has accrued interest on notes payable for January. 14 The company has accrued income taxes at the end of January of $14,600 15 By the end of January, $4,600 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). 16 Record the entry to close the revenue accounts. 17 Record the entrv to close the expense accounts. (a) Calculate the current ratio at the end of January. If the average current ratio less liquid than the industry average? Analyze the following for ACME Fireworks: (a) Calculate the current ratio at the end of January. If the average current ratio for the industry is 1.80 , is ACME Fireworks more or less liquid than the industry average? The current ratio is: Is the company more or less liquid than the industry average? (b) Calculate the acid-test ratio at the end of January. If the average acid-test ratio for the industry is 1.50 , is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? The acid-test ratio is: Is the company more or less likely to have difficulty paying its currently maturing debts? (c) Assume the notes payable were due on April 1,2024, rather than April 1, 2025. Calculate the revised current ratio at the end of January, and indicate whether the revised ratio would increase, decrease, or remain unchanged compared to your answer in (a). The revised current ratio is Indicate whether the revised ratio would increase, decrease, or remain unchanged compared to your answer in (3). On January 1,2024, the general ledger of ACME Fireworks includes the following account bolances: During January 2024 , the followng transactions occur: sald is Mig, loe, The coet of the enlits veld is $97,504. The following information is avaltable on January 31. a. Depreciption on the eguigmeat for the month of January is cakculated using the straightine thethod At the time the equipment was purctused, the compary ertimsted a sesidual value of $5,000 and a two-year service ide. b. The company records an adjusting ently for $16.140 for estinated fubure uncollectible accounts c. The contany has accrived interest on notes payabie for Jarnary. d. The company thas acciued income taxes at the end of January of $14.600 e. By the end of January. $4.600 of the gift cards sold on Jarnary 2 have been tedeemed perore cost of poods said). 1 Record sale of gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date." 2 Record purchase of additional inventory on account. $163,000. 3 Record firework sales for the first haif of the month totaling $151,000, All of these sales are on account. 4 Firework sales for the first half of the month total $151,000. The cost of the units sold is $81,800. Record the cost of the units sold. 5 Record receipt of $127,000 from customers on accounts receivable. 6 Record payment of $106,000 to inventory suppliers on accounts payable. 7 Record write-off of accounts receivable as uncollectible, $6,400. 8 Record firework sales for the second half of the month totaling $159,000. Sales include $13,000 for cash and $146,000 on account. 9 Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500. Record the cost of the units sold. 10 Record payment of cash for monthly salaries, $53,600. 11 Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $5,000 and a two-year service life. Record the adjusting entry for depreclation. 12 The company records an adjusting entry for $16,140 for estimated future uncollectible accounts. 12 The company records an adjusting entry for $16,140 for estimated future uncollectible accounts. 13 The company has accrued interest on notes payable for January. 14 The company has accrued income taxes at the end of January of $14,600 15 By the end of January, $4,600 of the gift cards sold on January 2 have been redeemed (ignore cost of goods sold). 16 Record the entry to close the revenue accounts. 17 Record the entrv to close the expense accounts. (a) Calculate the current ratio at the end of January. If the average current ratio less liquid than the industry average? Analyze the following for ACME Fireworks: (a) Calculate the current ratio at the end of January. If the average current ratio for the industry is 1.80 , is ACME Fireworks more or less liquid than the industry average? The current ratio is: Is the company more or less liquid than the industry average? (b) Calculate the acid-test ratio at the end of January. If the average acid-test ratio for the industry is 1.50 , is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? The acid-test ratio is: Is the company more or less likely to have difficulty paying its currently maturing debts? (c) Assume the notes payable were due on April 1,2024, rather than April 1, 2025. Calculate the revised current ratio at the end of January, and indicate whether the revised ratio would increase, decrease, or remain unchanged compared to your answer in (a). The revised current ratio is Indicate whether the revised ratio would increase, decrease, or remain unchanged compared to your answer in (3)