Exercise 10-17A Complete the accounting cycle using stockholders' equity transactions (LO10-2, 10-4, 10-5, 10-8) (GL)

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	43,200
Accounts Receivable		45,500
Supplies		8,000
Equipment		69,000
Accumulated Depreciation				$	9,500
Accounts Payable					15,100
Common Stock, $1 par value					15,000
Additional Paid-in Capital					85,000
Retained Earnings					41,100
Totals	$	165,700		$	165,700

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, $15,600.
January		10		Purchase additional supplies on account, $5,400.
January		12		Purchase 1,200 shares of treasury stock for $17 per share.
January		15		Pay cash on accounts payable, $17,000.
January		21		Provide services to customers for cash, $49,600.
January		22		Receive cash on accounts receivable, $17,100.
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 15,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.)
January		30		Resell 800 shares of treasury stock for $19 per share.
January		31		Pay cash for salaries during January, $42,500.

The following information is available on January 31, 2021.

1. Unpaid utilities for the month of January are $6,700.
2. Supplies at the end of January total $5,600.
3. 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 $10,500. (Hint: Start with the cost of the Equipment shown at the top.)
4. Accrued income taxes at the end of January are $2,500

RECORD IN GENERAL JOURNAL:

(1)Record issuance of an additional 2,000 shares of $1 par value common stock for $40,000.

(2)Record the providing of services to customers on account, $15,600.

(3)Record purchase of additional supplies on account, $5,400.

(4)Record purchase of 1,200 shares of treasury stock for $17 per share.

(5)Record payment of cash on accounts payable, $17,000.

(6)Record the providing of services to customers for cash, $49,600.

(7)Record the receipt of cash on accounts receivable, $17,100.

(8)Record the declaration of 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 15,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)

(9)Record the reselling of 800 shares of treasury stock for $19 per share.

(10)Record the payment of cash for salaries during January, $42,500.

(11)Unpaid utilities for the month of January are $6,700. Prepare the adjusting entry for utilities.

(12)Supplies at the end of January total $5,600. Prepare the adjusting entry for supplies.

(13)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 $10,500. Prepare the adjusting entry for depreciation.

(14)Accrued income taxes at the end of January are $2,500. Prepare the adjusting entry for income taxes.

(15)Record the closing entry for revenue.

(16)Record the closing entry for expenses.

(17)Record the closing entry for dividends.

Post-closing:

Grand Finale Fireworks
Classified Balance Sheet
January 31, 2021
Assets		Liabilities
Current Assets:		Current Liabilities:
Total Current Assets		Total Current Liabilities
Noncurrent Assets:		Stockholders Equity
		Total Stockholders Equity
Total Assets		Total Liabilities & Stockholders Equity

Post-closing

Grand Finale Fireworks
Multiple-Step Income Statement
For the Month ended January 31, 2021
Total Revenue
Total Operating Expenses