Return to question On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Credit Debit $ 59,800 27,200 points $ 3,300 Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (58, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37.400 25,200 166,000 15.900 231.000 65,400 $315,600 $315,600 During January 2021, the following transactions occur. January 1 Purchase equipment for $20,600. The company estimates a residual value of $2,600 and a five-year service life. January 4 Pay cash on accounts payable, $10,600. January 8 Purchase additional inventory on account, $93,900. January 15 Receive cash on accounts receivable, $23,100. January 19 Pay cash for salaries, $30,900. January 28 Pay cash for January utilities, $17,600. January 30 Sales for January total $231,000. All of these sales are on account. The cost of the units sold is $120,500. The following information is available on January 31, 2021. Return to question January 26 Pay cash or January utilities, 317, UU. January 30 Sales for January total $231,000. All of these sales are on account. The cost of the units sold is $120,500. The following information is available on January 31, 2021. points a. Depreciation on the equipment for the month of January is calculated using the straight-line method b. The company estimates future uncollectible accounts. The company determines $4,100 of accounts receivable on January 31 are past due, and 50% 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.) C. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,700. e. Accrued income taxes at the end of January are $10,100. Answer is not complete. Income Requirement General Journal General Ledger Trial Balance Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 8) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 9-13). 3. Review the adjusted Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 14 and 15). 7. Using the information from the requirements above, complete the 'Analysis' tab. Requirement General Journal > Return to question X Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis points Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Credit Debit 20,600 Jan 01 Equipment Cash 20,600 Jan 04 10,600 Accounts Payable Cash 10.600 Jan 08 Inventory Accounts Payable 93,900 93,900 Jan 15 23,100 Cash Accounts Receivable 23,100 Jan 19 30,900 Salaries Expense Cash anan Return to question Jan 19 _ 30,900/ Salaries Expense Cash 30000/ Jan 28 17,800/ points Utilities Expense Cash /so17 Jan 30 2310000 Accounts Receivable Sales Revenue /000 231 10 Cost of Goods Sold _120,5000 Inventory _ 120,53000 Jan 21 Depreciation Expense Accumulated Depreciation Jan 31 Bad Debt Expense Allowance for Uncollectible Accounts Jan 31 Interest Receivable Interest Revenue Return to que Jan 31 Interest Receivable Interest Revenue a13i Salaries Expense Salaries Payable 131 Income Tax Expense Income Tax Payable 1 3 1 Sales Revenue Interest Revenue Retained Earnings Retained Earnings Cost of Goods Sold Salaries Expense Utilities Expense Bad Debt Expense Depreciation Expense Income Tax Expense Analyze how well TNT Fireworks manages its assets: (a) Calculate the return on assets ratio for the month of January. If the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies in the same industry? points The return on assets ratio is: The company is more profitable. (True or False) True (b) Calculate the profit margin for the month of January. If the industry average profit margin is 3%, is the company more or less efficient at converting sales to profit than other companies in the same industry? The profit margin is: The company is more efficient at converting sales to profit. (True or False) True (c) Calculate the asset turnover ratio for the month of January. If the industry average asset turnover is 0.4 times per month, is the company more or less efficient at producing revenues with its assets than other companies in the same industry? The asset turnover ratio is: times The company is more efficient at producing revenues with its assets. (True or False) True