Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

* Please help me double-check again. When I hit the submit button, it keeps showing this question as incomplete. Please help me figure out which

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 double-check again. When I hit the submit button, it keeps showing this question as incomplete. Please help me figure out which part I am missing.

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 $ 25,500 6,900 4,800 67,000 $ 4,900 82,000 17,300 $104,200 $104,200 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $11,100 ($925/month). January 9 Purchase additional supplies on account, $5,200. January 13 Provide services to customers on account, $27,200. January 17 Receive cash in advance from customers for services to be provided in the future, $5,400. January 20 Pay cash for salaries, $13,200. January 22 Receive cash on accounts receivable, $25,800. January 29 Pay cash on accounts payable, $5,700. The following information is available on January 31. Rent for the month of January has expired. Supplies remaining at the end of January total $4,500. By the end of January, $4,475 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $4,610. No Date Account Title Debit Credit 1 Jan 02 11,100 Prepaid Rent Cash 11,100 2 Jan 09 5,200 Supplies Accounts Payable 5,200 3 Jan 13 27,200 Accounts Receivable Service Revenue 27,200 4 Jan 17 Cash 5,400 Deferred Revenue 5,400 5 Jan 20 Salaries Expense 13,200 Cash 13,200 6 Jan 22 Cash 25,800 Accounts Receivable 25,800 7 Jan 29 Accounts Payable 5,700 Cash 5,700 8 Jan 31 Rent Expense 925 Prepaid Rent 925 9 Jan 31 5,500 Supplies Expense Supplies 5,500 10 Jan 31 Deferred Revenue 4,475 Service Revenue 4,475 11 Jan 31 4,610 Salaries Expense Salaries Payable 4,610 12 Jan 31 Service Revenue 31,675 Retained Earnings 31,675 13 Jan 31 24,235 Retained Earnings Salaries Expense Rent Expense Supplies Expense 17,810 925 5,500 Adjusted Dynamite Fireworks Income Statement For the year ended January 31, 2021 Revenues: Service Revenue 31,675 31,675 Total Revenue Expenses: Salaries Expense Rent Expense Supplies Expense 17,810 925 5,500 Total Expenses Net Income 24,235 7,440 $ $ Adjusted Dynamite Fireworks Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Cash $ $ 26,700 8,300 Accounts Payable Salaries Payable 4,400 4,610 Accounts Receivable Supplies Prepaid Rent 4,500 10,175 Total Current Liabilities 9,010 Deferred Revenue 925 Total Current Assets 49,675 Total Liabilities 9,935 Stockholders' Equity Long-term Assets: Land 67,000 Common Stock Retained Earnings 82,000 24,740 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity 106,740 116,675 Total Assets $ 116,675 $ 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 $ 7,440 (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 5.00 (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? Good

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

Step: 3

blur-text-image

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

Auditor Jokes The Ultimate Collection Of Auditor Jokes

Authors: Chester Croker

1st Edition

1080090169, 978-1080090167

More Books

Students also viewed these Accounting questions

Question

Define the term Working Capital Gap.

Answered: 1 week ago