Question

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 $24,900 6,300 4,200 61,000 $ 4,300 76,000 16,100 $ 96,400 $96,400 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $9,300 ($775/month). January 9 Purchase additional supplies on account, $4,600. January 13 Provide services to customers on account, $26,600. January 17 Receive cash in advance from customers for services to be provided in the future, $4,800. January 20 Pay cash for salaries, $12,600. January 22 Receive cash on accounts receivable, $25,200. January 29 Pay cash on accounts payable, $5,100.
hi I need parts "4,5,6,7" completed, the ones before it are already done but they have more info

Answer 1

Requirement 4:

DYNAMITE FIREWORKS
Income Statement
For the year ended January 31,2012
Revenues:
Service revenue	$30,625
Total revenues (i)	$30,625
Expenses:
Salaries expense	$17,630
Supplies expense	$4,900
Rent expense	$775
Total Expenses (ii)	$23,305
Net income (i-ii)	$7,320

Requirement 5:

DYNAMITE FIREWORKS
Balance Sheet
January 31,2012
Assets		Liabilities
Current Assets:		Current liabilities:
Cash	$27,900	Accounts payable	$3,800
Accounts receivable	$7,700	Salaries payable	$5,030
Supplies	$3,900	Deferred revenue	$775
Prepaid Rent	$8,525
		Total current liabilities	$9,605
Total current assets	$48,025	Stockholders' equity:
Long-term assets:		Common stock	$76,000
Land	$61,000	Retained earnings	$23,420
Total long-term assets	$61,000	Total stockholders' equity	$99,420
Total Assets	$109,025	Total liabilities and stockholders' equity	$109,025

Requirement 6:

No.	Date	Account title and explanation	Debit	Credit
1	January 31,2021	Service revenue	$30,625
		Income Summary		$30,625
		[To close revenue accounts]
2	January 31,2021	Income Summary	$23,305
		Salaries expense		$17,630
		Supplies expense		$4,900
		Rent expense		$775
		[To close expenses accounts]
3	January 31,2021	Income Summary [30,625-23,305]	$7,320
		Retained earnings		$7,320
		[To close income summary account]

Requirement 7:

7a

Income Statement

$7,320

7b. Current ratio = Current assets ÷ Current liabilities

= 48,025/9,605

= 5:1

7c. Current ratio is more than 2. Therefore it is Good.