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During January $2024,$ 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.$

Required:

$1.$ Record each of the transactions listed above.

$2.$ Record the adjusting entries on January $31.$

Rent for the month of January has expired.

Supplies remaining at the end of January total $$2,800.$ All other supplies have been used.

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.$

$3.$ Prepare an adjusted trial balance as of January $31,2024.$

$4.$ Prepare an income statement for the period ended January $31,2024.$

$5.$ Prepare a classified balance sheet as of January $31,2024.$

$6.$ Record closing entries.

$7.$ Analyze the following features of Dynamite Fireworks$$ financial condition:

a$.$ What is the amount of profit reported for the month of January?

b$.$ Calculate the ratio of current assets to current liabilities $($the current ratio$)$ at the end of January.

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.Record each of the transactions. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry R

account field.$)$

View transaction listReq $2$

Req $3$

Req $4$

Req $5$

Req $6$

Req$7a$

Req $7$b

Req$7c$

Prepare an adjusted trial balance as of January $31,2024.$

$\backslash$table$[[$DYNAMITE FIREWORKS,$],[$Adjusted Trial Balance,,$],[$Accounts$,$Debit,Credit$],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,$$$,],[$Totals$,,]]$

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