Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Debit Credit $24,200 5,600 3,500 54,000 Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals $87,300 $3,600 69,000 14,700 $87,300 During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,200 ($600/month). January 9 Purchase additional supplies on account, $3,900. January 13 Provide services to customers on account, $25,900. January 17 . Receive cash in advance from customers for services to be provided in the future, $4,100. Pay cash for salaries, $11,900. Receive cash on accounts receivable, $24,500. January 20 January 22 January 29 Pay cash on accounts payable, $4,400. The following information is available on January 31. Rent for the month of January has expired. . • Supplies remaining at the end of January total $3,200. All other supplies have been used. By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,520.

On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Debit Credit $24,200 5,600 3,500 54,000 Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals $87,300 $3,600 69,000 14,700 $87,300 During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,200 ($600/month). January 9 Purchase additional supplies on account, $3,900. January 13 Provide services to customers on account, $25,900. January 17 . Receive cash in advance from customers for services to be provided in the future, $4,100. Pay cash for salaries, $11,900. Receive cash on accounts receivable, $24,500. January 20 January 22 January 29 Pay cash on accounts payable, $4,400. The following information is available on January 31. Rent for the month of January has expired. . • Supplies remaining at the end of January total $3,200. All other supplies have been used. By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,520.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
Please do not give image format
The following information is available on January 31. • Rent for the month of January has expired. . • Supplies remaining at the end of January total $3,200. All other supplies have been used. . By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. • Unpaid salaries at the end of January are $5,520. . Requirement. Income Statement Using the information from the requirements above, complete the 'Analysis' tab. Analyze the following features of Dynamite Fireworks' financial condition: (a) What is the amount of profit reported for the month of January? > Show Transcribed Text Requirement General Journal The amount of profit reported for the month of January is $ (b) Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January. The ratio of current assets to current liabilities at the end of January is Revenues: General Ledger General Journal Service Revenue (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. Does the company appear to be in good or bad financial condition? Total Revenue Expenses: Trial Balance Total Expenses General Ledger <Balance Sheet $ Trial Balance Dynamite Fireworks Income Statement For the Year Ended January 31, 2024 0 Prepare an income statement for the period ended January 31, 2024. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing <Trial Balance Income Statement $ Balance Sheet 0 0 Ć Analysis > Good Balance Sheet Analysis Analysis Balance Sheet > 7,188 5.00
Transcribed Image Text:The following information is available on January 31. • Rent for the month of January has expired. . • Supplies remaining at the end of January total $3,200. All other supplies have been used. . By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. • Unpaid salaries at the end of January are $5,520. . Requirement. Income Statement Using the information from the requirements above, complete the 'Analysis' tab. Analyze the following features of Dynamite Fireworks' financial condition: (a) What is the amount of profit reported for the month of January? > Show Transcribed Text Requirement General Journal The amount of profit reported for the month of January is $ (b) Calculate the ratio of current assets to current liabilities (the current ratio) at the end of January. The ratio of current assets to current liabilities at the end of January is Revenues: General Ledger General Journal Service Revenue (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. Does the company appear to be in good or bad financial condition? Total Revenue Expenses: Trial Balance Total Expenses General Ledger <Balance Sheet $ Trial Balance Dynamite Fireworks Income Statement For the Year Ended January 31, 2024 0 Prepare an income statement for the period ended January 31, 2024. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing <Trial Balance Income Statement $ Balance Sheet 0 0 Ć Analysis > Good Balance Sheet Analysis Analysis Balance Sheet > 7,188 5.00
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $24,200 5,600 3,500 54,000 . $87,300 . Credit During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,200 ($600/month). Purchase additional supplies on account, $3,900. Provide services to customers on account, $25,900. Receive cash in advance from customers for services to be provided in the future, $4,100. Pay cash for salaries, $11,900. Receive cash on accounts receivable, $24,500. $3,600 69,000 14,700 $87,300 January 9 January 13 January 17 January 20 January 22 January 29 Pay cash on accounts payable, $4,400. The following information is available on January 31. • Rent for the month of January has expired. • Supplies remaining at the end of January total $3,200. All other supplies have been used. By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,520.
Transcribed Image Text:On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $24,200 5,600 3,500 54,000 . $87,300 . Credit During January 2024, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,200 ($600/month). Purchase additional supplies on account, $3,900. Provide services to customers on account, $25,900. Receive cash in advance from customers for services to be provided in the future, $4,100. Pay cash for salaries, $11,900. Receive cash on accounts receivable, $24,500. $3,600 69,000 14,700 $87,300 January 9 January 13 January 17 January 20 January 22 January 29 Pay cash on accounts payable, $4,400. The following information is available on January 31. • Rent for the month of January has expired. • Supplies remaining at the end of January total $3,200. All other supplies have been used. By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,520.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 8 steps with 15 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS