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. 5. Prepare a classified balance sheet as of January 31, 2021.

Answer 1

Assets Current Assets Cash Account Receivables Supplies Prepaid Rent Total Current Assets Long Term Assets DYNAMITE FIREWORKS Balance Sheet January 31,2021 Liabilities Current Liabilities $ 27,900 | Accounts Payable $ 3,800 $ 7,700 Unearned Revenue $ 4,800 $ 8,800 Total Current Liabilities $ 8,600 $ 8,525 $ 52,925 Stockholders equity Common Stock $ 76,000 $ 61,000 Retained Earnings $ 29,325 $ 61,000 Total Stockholders equity $ 105,325 $ 113,925 Total Liabilities and Stockholders equity | $ 113,925 Land Total Long Term Assets Total Assets

DYNAMITE FIREWORKS Statement of Accounting Equation Balance Sheet Income Statement Assets Liabilities Stockholder's Equity Revenue - Expenses = Net Income Date Accounts Prepaid Cash + Land Accounts payable Unearned Revenue Common Stock Receivable + Supplies + Retained Earnings 1 Rent 6,300 + $ = $ 4,300 + + + $ 76,000 + $ 16,100 11 Beg.Bal 02-Jan Rent Adjustment $ 24,900 + $ $ 19,300) + + + + 11 4,200 + + $ 61,000 + $ 9,300 + + $ (775) 4,600 + + + + + + $ 775 ......" = $ (775) 09-Jan + + $ + + $ 4,600 + + + + 13-Jan + + + + $ 26,600 $ 26,600 17-Jan + + + + 4,800 + + 20-Jan + + + + + + $ 12,600 = $ (12,600) + $ 26,600 $ 4,800 + $ (12,600) + $ 25,200 + $ (25,200) $ (5,100) + $ 27,900 $ 7,700 22-Jan + + + + + + + + = + + + 29-Jan Total $ $ (5,100) + 3,800 $ 8,800 $ 61,000 $ 76,000 $ 16,100 $ 26,600 $ 13,375 $ 13,225

Net Income Service Revenue Less : Rent $ $ $ $ 26,600 (775) (12,600) 13,225 Less : Salaries Net Income Statement of Retained earnings Beginning balance Add : Net Income Ending Balance $ $ $ 16,100 13,225 29,325