Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 1 0 - 2 0 ( Algo ) Complete the accounting cycle using stockholders' equity transactions ( LO 1 0 - 2 , 1
Exercise Algo Complete the accounting cycle using stockholders' equity transactions LOGL
On January the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts Debit Credit
Cash $
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation $
Accounts Payable
Common Stock, $ par value
Additional Paidin Capital
Retained Earnings
Totals $ $
During January the following transactions occur:
January Issue an additional shares of $ par value common stock for $
January Provide services to customers on account, $
January Purchase additional supplies on account, $
January Purchase shares of treasury stock for $ per share.
January Pay cash on accounts payable, $
January Provide services to customers for cash, $
January Receive cash on accounts receivable, $
January Declare a cash dividend of $ per share to all shares outstanding on January The dividend is payable on February Hint: Grand Finale Fireworks had shares outstanding on January and dividends are not paid on treasury stock.
January Resell shares of treasury stock for $ per share.
January Pay cash for salaries during January, $
The following information is available on January
Unpaid utilities for the month of January are $
Supplies at the end of January total $
Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $
Accrued income taxes at the end of January are $
Do the general journal for:
January : Record the declaration of a cash dividend of $ per share to all shares outstanding on January The dividend is payable on February Hint: Grand Finale Fireworks had shares outstanding on January and dividends are not paid on treasury stock.
Janurary : Record the resale of shares of treasury stock for $ per share.
January : Supplies at the end of January total $ Prepare the adjusting entry for supplies.
January : Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $ Prepare the adjusting entry for depreciation.
January : Accrued income taxes at the end of January are $ Prepare the adjusting entry for income taxes.
January : Record the entry to close the revenue accounts.
January : Record the entry to close the expense accounts.
January : Record the entry to close the dividends account.
Do the income statement for the Month Ended January
Do the balance sheet Jan
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started