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Required information (The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of Big Blast Fireworks includes the following

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Required information (The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (90, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 22,300 37,500 $ 3,500 32,000 64,600 31,400 32,000 58,000 31.500 $156,400 $156,400 The $32,000 beginning balance of inventory consists of 320 units, each costing $100. During January 2021. Big Blast Fireworks had the following inventory transactions: January ) Purchase 1,100 units for $117,700 on account ($107 each). January Purchase 1,200 units for $134,400 on account ($112 each). January 12 Purchase 1,300 units for $152,100 on account ($117 each). January 15 Return 110 of the units purchased on January 12 because of defects January 19 Sell 3,700 units on account for $555,000. The cost of the units sold in determined using a FIFO perpetual inventory system. January 22 Receive $533,000 from customers on accounts receivable. January 24 pay $363,000 to inventory suppliers on accounts payable. January 27 Write oft accounts receivable as uncollectible, $2,700. January 31 Pay cash for salaries during January, $116,000. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of Inventory are expected to sell in February for only $100 each b. The company estimates future uncollectible accounts. The company determines $4,200 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balance calculated in the general ledger.) c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31 d. Accrued income taxes at the end of January are $12,500. 5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) BIG BLAST FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities 0 Total current assets 0 Total current liabilities 0 Total liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders' equity 0 $ 0 Total assets $ 0

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