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On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:   ...

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:
  

  Accounts Debit Credit
  Cash $ 27,100
  Accounts Receivable 50,200
  Allowance for Uncollectible Accounts $ 6,200
  Inventory 22,000
  Land 66,000
  Equipment 25,000
  Accumulated Depreciation 3,500
  Accounts Payable 30,500
  Notes Payable (6%, due April 1, 2019) 70,000
  Common Stock 55,000
  Retained Earnings 25,100
       Totals $ 190,300 $ 190,300

  
During January 2018, the following transactions occur:

January 2. Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $167,000.
January 15. Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the units sold is $83,800.
January 23. Receive $127,400 from customers on accounts receivable.
January 25. Pay $110,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $6,800.
January 30. Firework sales for the second half of the month total $163,000. Sales include $17,000 for cash and $146,000 on account. The cost of the units sold is $89,500.
January 31. Pay cash for monthly salaries, $54,000.

I need help to ...

3. Prepare an adjusted trial balance as of January 31, 2018.

4. Prepare a multiple-step income statement for the period ended January 31, 2018.

5. Prepare a classified balance sheet as of January 31, 2018.

6. Record closing entries.

7. Calculate the current ratio at the end of January.

8. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average?

9. Calculate the acid-test ratio at the end of January.



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On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:

ekkarill92 answered 1 day ago
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