I need help figuring out how to get earnings per share, but included all the numbers I got already which should help since they're correct.
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Credit Debit $ 44,700 48,500 9,500 84,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals $ 11,000 16,600 20,000 100,000 39,100 $186,700 $186,700 During January 2021, the following transactions occur: January 2 Issue an additional 2,300 shares of $1 par value common stock for $46,000. January 9 Provide services to customers on account, $20,400. January 10 Purchase additional supplies on account, $6,900. January 12 Purchase 1,100 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $18,500. January 21 Provide services to customers for cash, $51,100. January 22 Receive cash on accounts receivable, $18,600. 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 20,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) Resell 800 shares of treasury stock for $21 per share. January 31 Pay cash for salaries during January, $44,000. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $8,200. b. Supplies at the end of January total $7,100. 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 $12,000. d. Accrued income taxes at the end of January are $3,100. Post-closing - Grand Finale Fireworks Classified Balance Sheet January 31, 2021 Liabilities Assets Current Assets: Cash Accounts Receivable Supplies 5.000 O 93,800 50,300 7,100 Current Liabilities: Accounts Payable Utilities Payable Income Tax Payable Dividends Payable 8,200 3,100 4,240 151,200 20,540 Total Current Assets Noncurrent Assets: Equipment Accumulated Depreciation 84,000 13,000) Total Current Liabilities Stockholders' Equity Common Stock Retained Earnings Treasury Stock Additional Paid-in Capital 22,300 39,760 5,700) 45,300 Total Stockholders' Equity Total Liabilities & Stockholders' Equity 201,660 $ 222,200 Total Assets $ 222,200 Adjusted Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 $ 71,500 Service Revenue $ 71,500 Total Revenue Utilities Expense Depreciation Expense Supplies Expense Salaries Expense 8,200 2,000 9,300 44,000 Total Operating Expenses Income Before Taxes Income Tax Expense Net Income 63,500 8,000 3,100 4,900 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places. 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: 2.7 % Is the company more or less profitable than other companies? More (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 22,000 (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 $2.40 last year (i.e., an average of $0.20 per month), is earnings per share for January 2021 better or worse than last year's average? Earnings per share is: $ 0.60 X Is earnings per share for January 2021 better or worse than last year's average? better
