equired information Skip to question   On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:   Accounts Debit   Credit Cash $ 25,400           Accounts Receivable   6,800           Supplies   4,700           Land   66,000           Accounts Payable         $ 4,800   Common Stock           81,000   Retained Earnings           17,100   Totals $ 102,900     $ 102,900       During January 2021, the following transactions occur:   January   2   Purchase rental space for one year in advance, $10,800 ($900/month). January   9   Purchase additional supplies on account, $5,100. January   13   Provide services to customers on account, $27,100. January   17   Receive cash in advance from customers for services to be provided in the future, $5,300. January   20   Pay cash for salaries, $13,100. January   22   Receive cash on accounts receivable, $25,700. January   29   Pay cash on accounts payable, $5,600.   4. Prepare an income statement for the period ended January 31, 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:

 

Accounts Debit   Credit
Cash $ 25,400          
Accounts Receivable   6,800          
Supplies   4,700          
Land   66,000          
Accounts Payable         $ 4,800  
Common Stock           81,000  
Retained Earnings           17,100  
Totals $ 102,900     $ 102,900  
 

 

During January 2021, the following transactions occur:
 

January   2   Purchase rental space for one year in advance, $10,800 ($900/month).
January   9   Purchase additional supplies on account, $5,100.
January   13   Provide services to customers on account, $27,100.
January   17   Receive cash in advance from customers for services to be provided in the future, $5,300.
January   20   Pay cash for salaries, $13,100.
January   22   Receive cash on accounts receivable, $25,700.
January   29   Pay cash on accounts payable, $5,600.

 

4. Prepare an income statement for the period ended January 31, 2021.

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