Chapter 10 General Ledger Accounting Cycle

On January 1, 2018, 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				$ 9,000
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 2018, 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	Repurchase 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, $49,100.
January 22	Receive cash on accounts receivable, $16,600.
January 29	Declare a cash dividend of $0.30 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, 2018 and dividends are not paid on treasury stock.)
January 30	Reissue 600 shares of treasury stock for $20 per share.
January 31	Pay cash for salaries during January, $42,000.

4.		Prepare a multiple-step income statement for the period ended January 31, 2018, in the 'Income statement' tab.
5.		Prepare a classified balance sheet as of January 31, 2018, in the 'Balance Sheet' tab.
7.		Using the information from the requirements above, complete the 'Analysis' tab.