On January $1,2024,$ the general ledger of a company includes the following account balances:

Accounts Debit Credit

Cash $$25,600$

Accounts Receivable $7,000$

Supplies $4,900$

Land $68,000$

Accounts Payable $$5,000$

Common Stock $83,000$

Retained Earnings $17,500$

Totals $$105,500$ $$105,500$

During January $2024,$ the following transactions occur:

January $2$ Purchase rental space for one year in advance, $$11,400($$$950/$month$).$

January $9$ Purchase additional supplies on account, $$5,300.$

January $13$ Provide services to customers on account, $$27,300.$

January $17$ Receive cash in advance from customers for services to be provided in the future, $$5,500.$

January $20$ Pay cash for salaries, $$13,300.$

January $22$ Receive cash on accounts receivable, $$25,900.$

January $29$ Pay cash on accounts payable, $$5,800.$

Required:

$1.$ Record each of the transactions listed above.

$2.$ Record the adjusting entries on January $31.$

Rent for the month of January has expired.

Supplies remaining at the end of January total $$4,600.$ All other supplies have been used.

By the end of January, $$4,550$ of services has been provided to customers who paid in advance on January $17.$

Unpaid salaries at the end of January are $$4,540.$

$3.$ Prepare an adjusted trial balance as of January $31,2024.$

$4.$ 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 a company financial condition:

What is the amount of profit reported for the month of January?

Calculate the ratio of current assets to current liabilities $($the current ratio$)$ at the end of January.

Based on a company profit and ratio of current assets to current liabilities, indicate whether a company appears to be in good or bad financial condition.