Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me answer these. thank you. On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

please help me answer these. thank you.

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $24,700 6,100 4,000 59,000 $ 4,100 74,000 15,700 $93,800 $93,800 During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $8,700 ($725/month). January 9 Purchase additional supplies on account, $4,400. January 13 Provide services to customers on account, $26,400. January 17 Receive cash in advance from customers for services to be provided in the future, $4,600. January 20 Pay cash for salaries, $12,400. January 22 Receive cash on accounts receivable, $25,000. January 29 Pay cash on accounts payable, $4,980. The following information is available on January 31. . Rent for the month of January has expired. Supplies remaining at the end of January total $3.700. By the end of January, $3,875 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5.170. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to come company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, selection. Unadjusted Dynamite Fireworks Income Statement For the year ended January 31, 2021 Revenues: Total Revenue Expenses: Total Expenses Unadjusted Dynamite Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities Total Current Assets Total Liabilities Long-term Assets: Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets Prey 4 of 4 Next Adjusted Dynamite Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities Total Liabilities Total Current Assets Long-term Assets: Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets Post-closing Dynamite Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities Total Liabilities Total Current Assets Long-term Assets: Stockholders' Equity Total Stockholders Equity Total Liabilities & Stockholders' Equity Total Assets Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis' tab. Analyze the following features of Dynamite Fireworks' financial condition: (a) What is the amount of profit reported for the month of January? The amount of profit reported for the month of January is (b) Calculate the ratio of current assets to current liabilities at the end of January The ratio of current assets to current liabilities at the end of January is (c) 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. Does the company appears to be in good or bad financial condition?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

1. How does debt financing differ from equity financing?

Answered: 1 week ago

Question

How would we like to see ourselves?

Answered: 1 week ago