Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Debit Credit Accounts $23,800 Cash Accounts 5,200 Receivable Supplies Land Accounts Payable Common Stock 3,100 50,000 $3,200 65,000 Retained 13,900 Earnings $82,100 $82,100 Totals During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $6,000 ($500/month) January 9 Purchase additional supplies on account, $3,500. January 13 Provide services to customers on account, $25,500 January 17 Receive cash in advance from customers for services to be provided in the future, $3,700. January 20 Pay cash for salaries, $11,500. January 22 Receive cash on accounts receivable, $24,100 January 29 Pay cash on accounts payable, $4,000 Rent for the month of January has expired. Supplies remaining at the end of January total $2,800. By the end of January, $3,200 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,800. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the adjusting entry for rent. Rent for the month of January has expired Note: Enter debits before credits. Debit Credit General Journal Date January 31 Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash Credit Debit $23,800 Accounts Receivable 5,200 Supplies Land Accounts Payable Common Stock Retained Earnings 3,100 50,000 $3,200 65,000 13,900 $82,100 $82,100 Totals During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $6,000 ($500/month). January January 13 Provide services to customers on account, $25,500. January 17 Receive cash in advance from customers for services to be provided 9 Purchase additional supplies on account, $3,500 . in the future, $3,700. January 20 Pay cash for salaries, $11,500. January 22 Receive cash on accounts receivable, $24,100 January 29 Pay cash on accounts payable, $4,000 3. Prepare an adjusted trial balance as of January 31, 2021. DYNAMITE FIREWORKS Adjusted Trial Balance January 31, 2021 Debit Accounts Credit Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Debit Accounts Cash $23,800 Accounts 5,200 Receivable Supplies Land 3,100 50,000 Accounts $3,200 Payable Common Stock 65,000 Retained Earnings 13,900 $82,100 $82,100 Totals During January 2021, the following transactions occur: 2 Purchase rental space for one year in advance, $6,000 ($500/month). 9 Purchase additional supplies on account, $3,500 January January January 13 Provide services to customers on account, $25,500. January 17 Receive cash in advance from customers for services to be provided in the future, $3,700 January 20 Pay cash for salaries, $11,500 January 22 Receive cash on accounts receivable, $24,100 January 29 Pay cash on accounts payable, $4,000 4. Prepare an income statement for the period ended January 31, 2021. DYNAMITE FIREWORKS Income Statement For the year ended January 31, 2021 Revenues: Expenses: Total Expenses Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Debit Credit Accounts $23,800 Cash Accounts 5,200 Receivable 3,100 50,000 Supplies Land Accounts $3,200 Payable 65,000 Common Stock Retained 13,900 Earnings $82,100 $82,100 Totals During January 2021, the following transactions occur: 2 Purchase rental space for one 9 Purchase additional supplies on account, $3,500. ear in advance, $6,000 ($500/month) January January January 13 Provide services to customers on account, $25,500. January 17 Receive cash in advance from customers for services to be provided in the future, $3,700 January 20 Pay cash for salaries, $11,500 January 22 Receive cash on accounts receivable, $24,100. January 29 Pay cash on accounts payable, $4,000 5. Prepare a classified balance sheet as of January 31, 2021 DYNAMITE FIREWORKS Balance Sheet January 31, 2021 Assets Liabilities Current liabilities: Current assets: Total current liabilities 0 Stockholder's Equity Total current assets 0 Long-term assets: Total stockholders' equity Total liabilities and stockholders' $ 0 $ Total assets 0 |equity Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Debit Credit Accounts $23,800 Cash Accounts 5,200 Receivable Supplies Land 3,100 50,000 Accounts $3,200 Payable Common Stock Retained 65,000 13,900 Earnings $82,100 $82, 100 Totals During January 2021, the following transactions occur: 2 Purchase rental space for one year in advance, $6,000 ($500/month ) January January 9 Purchase additional supplies on account, $3,500 January 13 Provide services to customers on account, $25,500 January 17 Receive cash in advance from customers for services to be provided in the future, $3,700. January 20 Pay cash for salaries, $11,500. January 22 Receive cash on accounts receivable, $24,100. January 29 Pay cash on accounts payable, $4,000. 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the entry to close the revenue accounts. Note: Enter debits before credits. Credit Date General Journal Debit January 31, 2021 View general journal Record entry Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Land Debit Credit $23,800 5,200 3,100 50,000 Accounts $ 3,200 Payable Common Stock 65,000 Retained Earnings 13,900 $82,100 $82,100 Totals During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $6,000 ($500/month) January 9 Purchase additional supplies on account, $3,500 January 13 Provide services to customers on account, $25,500 January 17 Receive cash in advance from customers for services to be provided in the future, $3,700 January 20 Pay cash for salaries, $11,500. January 22 Receive cash on accounts receivable, $24,100 January 29 Pay cash on accounts payable, $4,000 7. Analyze the following features of Dynamite Fireworks' financial condition: a. What is the amount of profit reported for the month of January? Income statement b. Calculate the ratio of current assets to current liabilities at the end of January. Current ratio 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 Good Bad