Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals Debit Credit $ 26,200 48,400 $ 5,300 21,100 57,000 20,500 2,600 29,600 61,000 46,000 28,700 $173,200 $173,200 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $158,000. January 15 Firework sales for the first half of the month total $146,000. All of these sales are on account. The cost of the units sold is $79,300. January 23 Receive $126,500 from customers on accounts receivable. January 25 Pay $101,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,900. January 30 Firework sales for the second half of the month total $154,000. Sales include $17,000 for cash and $137,000 on account. The cost of the units sold is $85,000. January 31 Pay cash for monthly salaries, $53,100. 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 $4,300 and a two-year service life. The company estimates future uncollectible accounts. The company determines $22,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Accrued interest expense on notes payable for January. Accrued income taxes at the end of January are $14,100. By the end of January, $4,100 of the gift cards sold on January 2 have been redeemed. 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.) During January 2021, the following transactions occur: 7 ces January 2 Sold gift cards totaling $10,200. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $158,000. January 15 Firework sales for the first half of the month total $146,000. All of these sales are on account. The cost of the units sold is $79,300. January 23 Receive $126,500 from customers on accounts receivable. January 25 Pay $101,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,900. January 30 Firework sales for the second half of the month total $154,000. Sales include $17,000 for cash and $137,000 on account. The cost of the units sold is $85,000. January 31 Pay cash for monthly salaries, $53,100. 3. Prepare an adjusted trial balance as of January 31, 2021. ACME Fireworks Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash $ 26,200 Accounts Receivable 199,000 Allowance for Uncollectible Accounts Inventory Land 5,300 14,800 57,000 20,500 3,275 Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries Expense Depreciation Expense Bad Debt Expense Interest Expense Income Tax Expense Totals $ 322,800 $ 3,275 4. Prepare a multiple-step income statement for the period ended January 31, 2021. ACME FIREWORKS Income Statement For the year ended January 31, 2021 Sales Revenue $ 304,100 Cost of Goods Sold 164,300 Gross Profit $ 139,800 Bad Debt Expense $ 600 Salaries Expense 53,100 Depreciation Expense 600 Interest Expense 305 Total operating expenses 54,605 85,195 Income Before Taxes Income Tax Expense Net Income 85,195 14,100 $ 71,095 5. Prepare a classified balance sheet as of January 31, 2021. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) Land Assets Less: Allowance for Uncollectible Accounts Total Current Assets ACME FIREWORKS Classified Balance Sheet January 31, 2021 0 Liabilities 0 Total Current Liabilities 0 Total Liabilities 0 Stockholders' Equity Total Stockholders' Equity 0 Total Assets $ 0 Total Liabilities and Stockholders' Equity $ 0 View transaction list Journal entry worksheet 1 2 Record the closing entry for revenue accounts. Note: Enter debits before credits. Date General Journal Debit Credit January 31, 2021 Sales Revenue Retained Earnings Record entry Clear entry View general journal > 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January. Current Ratio Choose Numerator + Choose Denominator = Current Ratio = Current Ratio =