Question
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 43,400 Accounts Receivable 45,900
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 43,400 | ||||
Accounts Receivable | 45,900 | |||||
Supplies | 8,200 | |||||
Equipment | 71,000 | |||||
Accumulated Depreciation | $ | 9,700 | ||||
Accounts Payable | 15,300 | |||||
Common Stock, $1 par value | 17,000 | |||||
Additional Paid-in Capital | 87,000 | |||||
Retained Earnings | 39,500 | |||||
Totals | $ | 168,500 | $ | 168,500 | ||
During January 2018, the following transactions occur: |
January2 | Issue an additional 2,100 shares of $1 par value common stock for $42,000. |
January9 | Provide services to customers on account, $16,700. |
January10 | Purchase additional supplies on account, $5,600. |
January 12 | Repurchase 1,000 shares of treasury stock for $20 per share. |
January 15 | Pay cash on accounts payable, $17,200. |
January 21 | Provide services to customers for cash, $49,800. |
January 22 | Receive cash on accounts receivable, $17,300. |
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 17,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.) | |
January 30 | Reissue 800 shares of treasury stock for $22 per share. |
January 31 | Pay cash for salaries during January, $42,700. |
The following information is available on January 31, 2018.
Unpaid utilities for the month of January are $6,900.
Supplies at the end of January total $5,800.
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 $10,700.
Accrued income taxes at the end of January are $2,700.
Prepare the adjusting entry for utilites
Prepare the adjusting entry for supplies
Prepare the adjusting entry for depreciation
Prepare the adjusting entry for income tax
Prepare the adjusting entry for revenue
Prepare the adjusting entry for expenses
Prepare the adjusting entry for dividends
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