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Required information (The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 11,600 34,800 152,400 71,300 124,000 Accounts Cash Accounts Receivable Inventory Land and Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 2,200 10,000 22,100 204,000 155,800 $394,100 $394,100 During January 2021, the following transactions occur: Borrow $104,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,011 are required at the end of each month for 60 months. Receive $31,400 from customers on accounts receivable. Pay cash on accounts payable, $15,000. January 1 January 4 January 10 January 15 January 30 January 31 Pay cash for salaries, $29,300. Firework sales for the month total $195,800. Sales include $65,400 for cash and $130, 400 on account. The cost of the units sold is $114,500. Pay the first monthly installment of $2,011 related to the $104,000 borrowed on January 1. Round your interest calculation to the nearest dollar. 4. Prepare a multiple-step income statement for the period ended January 31, 2021. Answer is not complete. Freedom Fireworks Multiple-Step Income Statement For the month ended January 31, 2021 Sales Revenue $ 195,800 Cost of Goods Sold 114,500 Gross Profit 81,300 $ 55,800 Expenses: Salaries Expense Depreciation Expense Bad Debt Expense 830 2,108 58,738 Total Operating Expenses Operating Income 22,562 Income Before Taxes Income Tax Expense 22,562 8,400 14,162 Net Income $

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