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Exercise 18-26 (Static) General ledger exercise; Bonds; Installment note, early extinguishment [LO18-4, 185,187] On January 1, 2024, the general ledger of Freedom Fireworks includes the

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Exercise 18-26 (Static) General ledger exercise; Bonds; Installment note, early extinguishment [LO18-4, 185,187] On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024 , the following transactions occur: January 2 iasue an additional 2,000 ahares of $1 par value common stock for $40,000. Janvary 9 Provide services to cuntomers on account, $14,300. January 10 precchase additiona1 supplies on account, $14,900. Sanuary 12 . Hepurehase 1,000 shares of treasury stock for $18 per share. January is pay eash on accountin payable, $16,500. 3anuary 21 Drovide servieen to cuntomern for eash, $49,100. January 22 Receive canh on accounts recelvable, 316,600 . January 29. Declare a canh dividend of 50.30 per thare to all ahares outatanding on January 29. The dividend in payable January 29 (Mint, Yreedom Fireworks had 10,000 shares outstanding on January 1, 2024, and dividends are not paid on tanuary to treanury ntoek.) Sanuary 31 pay cash for thalarien during anuary $42,000 per share. The following information is avallable on January 31, 2024. 1. Unpaid utilities for the month of January are $6,200. 2. Supplies at the end of January total $5,100. 3. 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 $10,000, 4. Accrued income taxes ot the end of January are $2,000. 1. Record each of the transactions listed above in the 'General Joumal' tab (these are shown as items i to 10 ) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 11 to 14 ). 3. Revlew the adjusted 'Trial Balance' as of January 31,2024 , in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31,2024 , in the 'Income statement' tab. 5. Prepare a cassified balance sheet as of January 31,2024 , in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16). 7. Using the information from the requirements above, complete the 'Analysis' tab. Each joumal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Freedom Fireworks } \\ \hline \multicolumn{1}{|c|}{ Multiple-Step Income Statement } \\ \hline For the Month ended January 31,2024 & \\ \hline & & \\ \hline Total revenue & & $ \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Unadjusted Analyte the fotiowing for Freedom Firtworks: (a) Coloulate the retum on equity for the month of January. If the average return on equity for the industry for January is 2.5% is, it the compary) more or less proftable than other companies in the same industry? The retum on equty le: to the comptriy mare or less prothable than other comphaies? (b) How many shares of common stock are outsianding as of January 31, 20247 The numbet of commen shares cutstanding as of Janjary 31,2024 is (c) Calalate eamings per share for the month of January. (Hint: To cakulate average shares of common stock outstanding take the beginning shares outstanding plus the ending sheres outstanding and disise the total by 2.) if eamings per share was 39 . 60 last year (i. . an average of 50.30 per month), is earnings per thare for January 2024 better or worse than last year's average?. Lam ist peer thare is Journal entry worksheet Issue an additional 2,000 shares of $1 par value common stock for $40,000. Note: Enter debits before credits

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