Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

On January $1,2024,$ the general ledger of Freedom Fireworks includes the following account balances:

Accounts Debit Credit

Cash $ $12,400$

Accounts Receivable $36,400$

Allowance for Uncollectible Accounts $ $3,000$

Inventory $153,200$

Land $79,300$

Buildings $132,000$

Accumulated Depreciation $10,800$

Accounts Payable $30,900$

Common Stock $212,000$

Retained Earnings $156,600$

Totals $ $413,300$ $ $413,300$

During January $2024,$ the following transactions occur:

January $1$ Borrow $$112,000$ from Captive Credit Corporation. The installment note bears interest at $6\%$ annually and matures in $5$ years. Payments of $$2,165$ are required at the end of each month for $60$ months.

January $4$ Receive $$32,200$ from customers on accounts receivable.

January $10$ Pay cash on accounts payable, $$23,000.$

January $15$ Pay cash for salaries, $$30,100.$

January $30$ Firework sales for the month total $$201,000.$ The cost of the units sold is $$118,500.$

January $31$ Pay the first monthly installment of $$2,165$ related to the $$112,000$ borrowed on January $1.$

$5.$ Prepare a classified balance sheet as of January $31,2024.($Amounts to be deducted should be indicated with a minus sign. Do not round intermediate calculations.$)$