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

During January 2024, the following transactions occur:

The following information is available on January 31, 2024.
1. Unpaid utilities for the month of January are $6,200.
2. Supplies at the end of January total $5,100.
3. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,000.
4. Accrued income taxes at the end of January are $2,000.

Required:
1. Record each of the transactions listed above in the “General Journal” tab (these are shown as items 1–10) assuming a FIFO perpetual inventory system. Review the “General Ledger” and the “Trial Balance” tabs to see the effect of the transactions on the account balances.
2. Record adjusting entries on January 31, in the “General Journal” tab (these are shown as items 11–14).
3. Review the adjusted “Trial Balance” as of January 31, 2024, in the “Trial Balance” tab.
4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the “Income Statement” tab.
5. Prepare a classified balance sheet as of January 31, 2024, in the “Balance Sheet” tab.
6. Record closing entries in the “General Journal” tab (these are shown as items 15 and 16).
7. Using the information from the requirements above, complete the “Analysis” tab.
a. Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.5%, is the company more or less profitable than other companies in the same industry?
b. How many shares of common stock are outstanding as of January 31, 2024?
c. Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the beginning shares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $3.60 last year (i.e., an average of $0.30 per month), is earnings per share for January 2024 better or worse than last year’s average?

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Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings Totals Debit $ 42,700 44,500 7,500 64,000 $158,700 Credit $ 9,000 14,600 10,000 80,000 45,100 $158,700