Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help creating the general ledger (include adjusted entry and closing entry for revenue & expense), income statement, balance sheet, and analysis please. On

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

I need help creating the general ledger (include adjusted entry and closing entry for revenue & expense), income statement, balance sheet, and analysis please.

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,700 46,500 8,500 74,000 $ 10,000 15,600 10,000 90,000 47,100 $172,700 $172,700 During January 2021, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide services to customers on account, $16,600. January 10 Purchase additional supplies on account, $5,900. January 12 Purchase 1,200 shares of treasury stock for $24 per share. January 15 Pay cash on accounts payable, $17,500. January 21 Provide services to customers for cash, $50,100. January 22 Receive cash on accounts receivable, $17,600. January 29 Declare a cash dividend of $0.20 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 $26 per share. January 31 Pay cash for salaries during January, $43,000. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $7,200. b. Supplies at the end of January total $6,100. 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 $11,000. d. Accrued income taxes at the end of January are $2,100. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 17 > Record issuance of an additional 2,200 shares of $1 par value common stock for $44,000. Note: Enter debits before credits. Date Account Title Debit Credit Jan 02 Record entry Clear entry View general journal Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 Total Revenue Total Operating Expenses 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 Liabilities & Stockholders' Equity Total Assets Analyze the following for Grand Finale Fireworks: (a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.50%, is the company more or less profitable than other companies in the same industry? The return on equity is: % Is the company more or less profitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 2021? The number of common shares outstanding as of January 31, 2021 is (c) Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the beginning shares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $3.60 last year (i.e., an average of $0.30 per month), is earnings per share for January 2021 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2021 better or worse than last year's average

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Life Audit Take Control Of Your Life Now Every Minutes Counts

Authors: Caroline Righton

1st Edition

978-0340836781

More Books

Students also viewed these Accounting questions