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On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,100 Accounts Receivable 6,500 Supplies 4,400 Land 63,000 Accounts Payable $ 4,500 Common Stock 78,000 Retained Earnings 16,500 Totals $ 99,000 $ 99,000 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $9,900 ($825/month). January 9 Purchase additional supplies on account, $4,800. January 13 Provide services to customers on account, $26,800. January 17 Receive cash in advance from customers for services to be provided in the future, $5,000. January 20 Pay cash for salaries, $12,800. January 22 Receive cash on accounts receivable, $25,400. January 29 Pay cash on accounts payable, $5,300.

Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $25,100 6,500 4,400 63,000 $ 4,500 78,000 16,500 $99,000 $99,000 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $9,900 ($825/month). January 9 Purchase additional supplies on account, $4,800. January 13 Provide services to customers on account, $26,800. January 17 Receive cash in advance from customers for services to be provided in the future, $5,000. January 20 Pay cash for salaries, $12,800. January 22 Receive cash on accounts receivable, $25,400. January 29 Pay cash on accounts payable, $5,300. 3. Prepare an adjusted trial balance as of January 31, 2021. DYNAMITE FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Salaries Payable Deferred Revenue Common Stock Retained Earnings Totals $ $ o 4. Prepare an income statement for the period ended January 31, 2021. DYNAMITE FIREWORKS Income Statement For the year ended January 31, 2021 Revenues: Service Revenue Expenses: Salaries Expense Rent Expense Supplies Expense Total Expenses 0 Net Income

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