On January $1,2024,$ the general ledger of TNT Fireworks included the following account balances:

AccountsDebitCreditCash$ $60,200$Accounts Receivable$28,000$Allowance for Uncollectible Accounts$$$ $3,700$Inventory$37,800$Notes Receivable $(5\%,$ due in $2$ years$)30,000$Land$170,000$Accounts Payable$16,300$Common Stock$235,000$Retained Earnings$71,000$Totals$ $326,000$$ $326,000$

During January $2024,$ the following transactions occurred:

January $1$Purchased equipment for $$21,000.$ The company estimates a residual value of $$3,000$ and a six$-$year service life.January $4$Paid cash on accounts payable, $$11,000.$January $8$Purchased additional inventory on account, $$97,900.$January $15$Received cash on accounts receivable, $$23,500$January $19$Paid cash for salaries, $$31,300.$January $28$Paid cash for January utilities, $$18,000.$January $30$Firework sales for January totaled $$235,000.$ All of these sales were on account. The cost of the units sold was $$122,500.$

The following information is available on January $31,2024.$

Depreciation on the equipment for the month of January is calculated using the straight$-$line method.

The company records an adjusting entry for $$3,250$ for estimated future uncollectible accounts.

The company has accrued interest on notes receivable for January. Interest will be received each December $31.$

Unpaid salaries owed to employees at the end of January are $$34,100.$

The company accrued income taxes at the end of January of $$10,500.$ Adjusted

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$TNT Fireworks$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Multiple$-$Step Income Statement$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$For the year ended January $31,2024\}\backslash \backslash$

$\backslash$hline Sales revenue & $235,000$ & & $\backslash \backslash$

$\backslash$hline Cost of goods sold & $\backslash ((122,500)\backslash )$ & & $\backslash \backslash$

$\backslash$hline Gross profit & & $\backslash$$ & $112,500\backslash \backslash$

$\backslash$hline Bad debt expense & $3,250$ & & $\backslash \backslash$

$\backslash$hline Salaries expense & $65,400$ & & $\backslash \backslash$

$\backslash$hline Utilities expense & $18,000$ & & $\backslash \backslash$

$\backslash$hline Depreciation expense & $250$ & & $\backslash \backslash$

$\backslash$hline P & & & $\backslash \backslash$

$\backslash$hline $,$ & & & $\backslash \backslash$

$\backslash$hline Total operating expenses & & & $86,900\backslash \backslash$

$\backslash$hline Operating income & & & $25,600\backslash \backslash$

$\backslash$hline Interest revenue & & & $0\backslash \backslash$

$\backslash$hline Income before taxes & & & $25,600\backslash \backslash$

$\backslash$hline P & & & $\backslash \backslash$

$\backslash$hline Net income & & $\backslash$$ & $25,600\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ sheet. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.

Adjusted Requirement

Analysis