Accounting Question
On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: During January 2024 , the following transactions occur: January 2 Issue an additional 2,16e shares of $1 par value comnon stock for $42,600. January 9 Provide services to customers on account, $19,300. January 10 Purchase additional supplies on account, $6,600. January 12 Purchase 1,200 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $18,200. January 21 Provide services to customers for cash, $50,800, January 22 Recelve cash on accounts receivable, $18,300. January 29 Dectare a cash dividend of $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15, (Hint: Grand Finale Fireworks had 17, 800 shares outstanding on January 1, 2024, and January 30 Resell 580 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $43,700. The following information is available on January 31,2024. a. Unpaid utilities for the month of January are $7,900. b. Supplies at the end of January total $6,800. c. 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 $11,700. d. Accrued income taxes at the end of January are $2,800. Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first account field.) Prepare a multiple-step income statement for the period ended January 31,2024 . Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Using the information from the requirements above, complete the 'Analysis' tab. (Enter your return on equity value to one decimal pla and earnings per share value to 2 decimal places.) Analyze the following for Grand Finale Firoworks: (a) Calculate the retum on equily for the month of January. If the average retum on equity for the industry for January is 2,60%, is the company more or less profitable than other companios in the same industry? The restrn on equaty is: is the company morn of less protitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 2024? The number of common shares outstanding as of January 31,2024 is (c) Calculate eamings per share for the month of January. (Hint To calculate average shares of common stock outstanding take the beginning thares outstanding plus the ending shares cutstanding and divide the total by 2) If eamings por share was $2.40 last year (i.e., an average of is eamings per share for January 2024 better or worse than last year's average? Prepare a classified balance sheet as of January 31, 2024. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection
