On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances:

During January 2024, the following transactions occur:
January 2 Purchase rental space for one year in advance, $6,000 ($500/month).
January 9 Purchase additional supplies on account, $3,500
January 13 Provide services to customers on account, $25,500.
January 17 Receive cash in advance from customers for services to be provided in the future, $3,700.
January 20 Pay cash for salaries, $11,500.
January 22 Receive cash on accounts receivable, $24,100.
January 29 Pay cash on accounts payable, $4,000.

Required:
1. Record each of the transactions listed above.
2. Record adjusting entries on January 31.
a. Rent for the month of January has expired.
b. Supplies remaining at the end of January total $2,800. All other supplies have been used.
c. By the end of January, $3,200 of services has been provided to customers who paid in advance on January 17.
d. Unpaid salaries at the end of January are $5,800.
3. Prepare an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January (Requirement 1) and adjusting entries at the end of January (Requirement 2).

4. Prepare an income statement for the period ended January 31, 2024.
5. Prepare a classified balance sheet as of January 31, 2024.
6. Record closing entries.
7. Analyze the following features of Dynamite Fireworks’ financial condition:
a. What is the amount of profit reported for the month of January?
b. Calculate the ratio of current assets to current liabilities (current ratio) at the end of January.
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.

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Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $23,800 5,200 3,100 50,000 $82,100 Credit $ 3,200 65,000 13,900 $82,100