[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,600 Accounts Receivable 49,200 Allowance for Uncollectible Accounts $ 5,700 Inventory 21,500 Land 61,000 Equipment 22,500 Accumulated Depreciation 3,000 Accounts Payable 30,000 Notes Payable (6%, due April 1, 2019) 65,000 Common Stock 50,000 Retained Earnings 27,100 Totals $ 180,800 $ 180,800 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $11,000. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $162,000. January 15. Firework sales for the first half of the month total $150,000. All of these sales are on account. The cost of the units sold is $81,300. January 23. Receive $126,900 from customers on accounts receivable. January 25. Pay $105,000 to inventory suppliers on accounts payable. January 28. Write off accounts receivable as uncollectible, $6,300. January 30. Firework sales for the second half of the month total $158,000. Sales include $14,000 for cash and $144,000 on account. The cost of the units sold is $87,000. January 31. Pay cash for monthly salaries, $53,500. 5.value: 10.00 pointsRequired information 1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ReferenceseBook & Resources General JournalLearning Objective: 08-01 Distinguish between current and long-term liabilities.Learning Objective: 08-04 Explain the accounting for other current liabilities. Difficulty: 2 MediumLearning Objective: 08-02 Account for notes payable and interest expense.Learning Objective: 08-06 Assess liquidity using current liability ratios. Check my work 6.value: 10.00 pointsRequired information 1. 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 $4,500 and a two-year service life. 2. At the end of January, $26,000 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 4% will not be collected. 3. Accrued interest expense on notes payable for January. 4. Accrued income taxes at the end of January are $14,500. 5. By the end of January, $4,500 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 transaction/event, select "No journal entry required" in the first account field.) ReferenceseBook & Resources General JournalLearning Objective: 08-01 Distinguish between current and long-term liabilities.Learning Objective: 08-04 Explain the accounting for other current liabilities. Difficulty: 2 MediumLearning Objective: 08-02 Account for notes payable and interest expense.Learning Objective: 08-06 Assess liquidity using current liability ratios. Check my work 7.value: 10.00 pointsRequired information 3. Prepare an adjusted trial balance as of January 31, 2018. ReferenceseBook & Resources WorksheetLearning Objective: 08-01 Distinguish between current and long-term liabilities.Learning Objective: 08-04 Explain the accounting for other current liabilities. Difficulty: 2 MediumLearning Objective: 08-02 Account for notes payable and interest expense.Learning Objective: 08-06 Assess liquidity using current liability ratios. Check my work 8.value: 10.00 pointsRequired information 4. Prepare a multiple-step income statement for the period ended January 31, 2018. ReferenceseBook & Resources WorksheetLearning Objective: 08-01 Distinguish between current and long-term liabilities.Learning Objective: 08-04 Explain the accounting for other current liabilities. Difficulty: 2 MediumLearning Objective: 08-02 Account for notes payable and interest expense.Learning Objective: 08-06 Assess liquidity using current liability ratios. Check my work 9.value: 10.00 pointsRequired information 5. Prepare a classified balance sheet as of January 31, 2018. (Enter the Asset Accounts in order of liquidity. Amounts to be deducted should be indicated with a minus sign.) ReferenceseBook & Resources WorksheetLearning Objective: 08-01 Distinguish between current and long-term liabilities.Learning Objective: 08-04 Explain the accounting for other current liabilities. Difficulty: 2 MediumLearning Objective: 08-02 Account for notes payable and interest expense.Learning Objective: 08-06 Assess liquidity using current liability ratios. Check my work 10.value: 10.00 pointsRequired information 6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ReferenceseBook & Resources General JournalLearning Objective: 08-01 Distinguish between current and long-term liabilities.Learning Objective: 08-04 Explain the accounting for other current liabilities. Difficulty: 2 MediumLearning Objective: 08-02 Account for notes payable and interest expense.Learning Objective: 08-06 Assess liquidity using current liability ratios. Check my work 11.value: 10.00 pointsRequired information 7. Analyze the following for ACME Fireworks Requirement 1: a-1. Calculate the current ratio at the end of January. a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average? more liquid less liquid Requirement 2: b-1. Calculate the acid-test ratio at the end of January.