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15 Part 6 of 6 0.76 points Required Information Exercise 10-17 Complete the accounting cycle using stockholders' equity transactions (L010-2, 10-4, 10-5 10-8) The following

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15 Part 6 of 6 0.76 points Required Information Exercise 10-17 Complete the accounting cycle using stockholders' equity transactions (L010-2, 10-4, 10-5 10-8) The following information applies to the questions displayed below) On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances Accounts Debit Credit Cash $ 42,700 Accounts Receivable 44,500 Supplies 7,500 Equipment 64,000 Accumulated Depreciation $ 9,800 Accounts Payable 14,600 Common Stock, $1 par value 10,000 Additional Paid-in Capital 80,000 Retained Earnings 45, 100 Totals $158,700 $158,700 During January 2021, the following transactions occur January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 9 Provide services to customers on account, $14,300. January 10 Purchase additional supplies on account, $4,900. January 12 Purchase 1,000 shares of treasury stock for $18 per share. January 15 Pay cash on accounts payable, $16,500. January 21 Provide services to customers for cash, $49, 108. January 22 Receive cash on accounts receivable, $16,600. January 29 Declare a cash dividend of $8.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 10,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 600 shares of treasury stock for $20 per share. January 31 Pay cash for salaries during January. $42,008. Exercise 10-17 Part 7 7. Analyse the following for Grand Finale Fireworks 1. Calculate the return on equity for the month of January Answer is not complete. Choose Numerator Net Income 40 Return on Equity Ratio Choose Denominator Average Stockholders Return on Equity Ratie Return equi 22. 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? More profitable Less profitable h. How many shares of common stock are outstanding as of January 31, 20217 Number of common stock outstanding 01. 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.) Answer is not complete. Earnings Per Share Earnings Choose Numerator Choose Denominator Per Share Earnings Average Shares Net Income Per Outstanding Share 4,400 0 22. It earnings per share was $3,60 last your (., an average of $0.30 per month), is eamings por share for January 2021 better or worse than last year's average? Better Worse

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