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: Credit Debit $ 42,700 44,500 7,500 64,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals $ 9,000 14,600 10,000 80,000 45, 100 $ 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, $49,100. 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, 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, $ 42,000. Exercise 10-17 Part 3 a. Unpaid utilities for the month of January are $6,200. b. Supplies at the end of January total $5,100. c. 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 $10,000. d. Accrued income taxes at the end of January are $2,000. 3. Prepare an adjusted trial balance as of January 31, 2021. GRAND FINALE FIREWORKS Adjusted Trial Balance January 31, 2021 Debit Accounts Credit Exercise 10-17 Part 4 4. Prepare an income statement for the period ended January 31, 2021. GRAND FINALE FIREWORKS Income Statement For the month ended January 31, 2021 Revenues: Accounts Receivable $ 14,300 Cash 49,100 Expenses: Salaries Expense Utilities Expense (42,000) (4,900) (11,600) Dividends Income Before Taxes 4,900 $ 4,900