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, $$10,500($ $$875$ per month$).$

January $9$ Purchase additional supplies on account, $$5,000.$

January $13$ Provide services to customers on account, $$27,000.$

January $17$ Receive cash in advance from customers for services to be provided in the future, $$5,200.$

January $20$ Pay cash for salaries, $$13,000.$

January $22$ Receive cash on accounts receivable, $$25,600.$

January $29$ Pay cash on accounts payable, $$5,500.$

Required:

Record each of the transactions listed above.

Record the adjusting entries on January $31.$

Rent for the month of January has expired.

Supplies remaining at the end of January total $$4,300.$

By the end of January, $$4,325$ of services has been provided to customers who paid in advance on January $17.$

Unpaid salaries at the end of January are $$4,750.$

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 $2).$

Prepare an income statement for the period ended January $31,2024.$

Prepare a classified balance sheet as of January $31,2024.$

Record closing entries.

Analyze the following features of Dynamite Fireworks' financial condition: