Required Information

Journal Entries $-$ Problem $7-6($Algo$)$ Comprehensive problem $($LO$7-1,7-4,7-7)$

On January $1,2026,$ the general ledger of TNT Fireworks includes the following account balances:

$\backslash$table$[[$Accounts$,$Debit,Cresit$],[$Cash$,559,5$ee$,],[$Accounts Receivable,$26,600,],[$Allowance for Uncollectible Accounts,,$53,000],[$Inventory$,37,109,],[$Notes Receivable $(5$x$,$ due in $2$ years$),21,600,],[$Land$,169,0$es$,],[$Accounts Payable,,$15,600],[$Common Stock,,$228,000],[$Retained Earnings,,$61,209],[$Totals$,$$ $307,800,$$ $397,300]]$

During January $2026,$ the following transactions occur:

Janaary $1$ Purchase equipment for $$20,309.$ The company estimates a resisal value of $$2,300$ and a $5-$year service $11f$ e$.$

January $4$ Pay cash on accounts payable, $$10,30e.$

January $8$ Purchase additional inventory on account, $590,900.$

January $15$ Receive cash on accounts receivable, $$22,800.$

January $19$ Pay cash for salaries, $$30,600.$

January $28$ Pay cash for January utilities, $$17,3$e$9.$

January $30$ Firework sales for Janaary total $$228,600.$ All of these sales are on account. The cost of the units sold is $$119,6ee.$

Information for adjusting entries:

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

b$.$ At the end of January, $$3,800$ of accounts receivable are past due, and the company estimptes that $50\%$ of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that $2\%$ will not be collected. The note recelvable of $$21,600$ is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

c$.$ Accrued interest revenue on notes receivable for January.

d$.$ Unpaid salaries at the end of January are $$33,400.$

e$.$ Accrued income taxes at the end of January are $$9,800.$

Prepare a classified balance sheet as of January $31,2026$

Note: Amounts to be deducted should be indicated by a minus sign