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Required information (The following information applies to the questions displayed below

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Required information (The following information applies to the questions displayed below.) On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 26, 100 48,200 $ 5,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock Retained Earnings Totals 21,000 56,000 20,000 2,500 29,500 60,000 45,000 29,100 $171,300 $171,300 During January Year 1, the following transactions occur: January 2 Sold gift cards totaling $10,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $157,000. January 15 The comapany sales for the first half of the month total $145,000. All of these sales are on account. The cost of the units sold is $78,800. January 23 Receive $126,400 from customers on accounts receivable. January 25 Pay $100,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,800. January 30 The comapany sales for the second half of the month total $153,000. Sales include $16,000 for cash and $137,000 on account. The cost of the units sold is $84,500. January 31 Pay cash for monthly salaries, $53,600. 3. Prepare an adjusted trial balance as of January 31, Year 1. Answer is complete and correct. Adjusted Trial Balance January 31, Year 1 Accounts Debit Credit Cash 25,500 163,300 Cost of Goods Sold Accounts Receivable 198,000 Allowance for Uncollectible Accounts 13,380 14,700 56,000 20,000 53,000 13,980 300 Inventory Land Equipment Salaries Expense Bad Debt Expense Interest Expense Income Tax Expense Depreciation Expense Accumulated Depreciation Income Tax Payable Interest Payable Accounts Payable Notes Payable Common Stock Deferred Revenue Sales Revenue Retained Earnings Totals ooOOOOooooooooooooooo 14,000 650 3,150 14,000 300 86,500 60,000 45,000 6,000 302,000 29.100 $ 559,430 $ 559,430
4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Answer is complete and correct. Income Statement For the year ended January 31, Year 1 Sales Revenue $ 302,000 Cost of Goods Sold 163,300 Gross Profit $ Salaries Expense 53,000 Bad Debt Expense 13,980 Depreciation Expense 650 138,700 67.630 71,070 300 ? Total operating expenses Operating Income Interest Expense Income Before Taxes Income Tax Expense Net Income ? 70,770 14,000 56,770 $
5. Prepare a classified balance sheet as of January 31, Year 1. (Enter the Asset Accounts in order of liquidity. Amounts to deducted should be indicated with a minus sign.) Classified Balance Sheet January 31, Year 1 Assets Liabilities Cash $ 25,500 Accounts Payable Deferred Revenue -13,380 Interest Payable 14,700 Income Tax Payable $ 86,500 6,000 300 (13,380)| Less: Allowance for Uncollectible Accounts Inventory 14,000 Total Current Assets 106,800 60,000 166,800 26,820 Total Current Liabilities Notes Payable Total Liabilities Stockholders' Equity 56,000 Common Stock 20,000 Retained Earnings 45,000 Land Equipment Total Stockholders' Equity Total Liabilities and Stockholders' Equity 45,000 $ 211,800 Total Assets $ 102,820
6. Record closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first acco field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 31 Deferred Revenue 6,000 Sales Revenue 302.000 Retained Earnings 308,000 2 January 31 81,280 Retained Earnings Salaries Expense Bad Debt Expense Interest Expense Income Tax Expense 53,000 13,980 300 14,000
7. Analyze the following for the company Requirement 1: a-1. Calculate the current ratio at the end of January Current Ratio Choose Numerator + Choose Denominator - Current Ratio Current Ratio a-2. If the average current ratio for the industry is 1.80, is the company more or less liquid than the industry average? O More liquid O Less liquid Requirement 2: b-1. Calculate the acid-test ratio at the end of January Acid-test Ratio Choose Numerator + Choose Denominator = Acid-test Ratio Acid-test Ratio b-2. If the average acid-test ratio for the industry is 1.50, is the company more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)? More likely Less likely Requirement 3: c-1. Assume the notes payable were due on April 1. Year 1, rather than April 1, Year 2. Calculate the revised current ratio at the end of January Current Ratio + Choose Denominator Choose Numerator Current Ratio Current Ratio times