On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: DebitCredit 44,400 47,900 9,200 81,000 Cash Accounts Recelvable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Pald-In Capital Retalned Eamings $ 10,700 16.300 17,000 97000 41.500 Totals $182.500 $182,500 During January 2018, the following transactions occur January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000 January 9 Provide services to customers on account, $19,300. January 10 Purchase additional supplies on account, $6,600 January 12 Repurchase 1,200 shares of treasury stock for $20 per share January 15 Pay cash on accounts payable, $18,200 January 21 Provide services to customers for cash, $50,800. January 22 Receive cash on accounts receivable, $18,300. January 29 Declare a cash dividend of S0.20 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 500 shares of treasury stock for $22 per share January 31 Pay cash for salaries during January. $43,700 JanuaryU2Cash 44,100 Common stock 2,100 Additional paid-in capital 42,000 January 09 Accounts receivable 19,300 Service revenue 19,300 January 10 Supplies 6,600 Accounts payable 6,600 4 January 12 Treasury stock 24,000 Cash 24,000 5 January 15 Accounts payable 18,200 Cash 18,200 January 21 Cash 50,800 Service revenue 50,800 January 22 Cash 18,300 Accounts receivable 18,300 January 29 Dividends 3,400 Dividends payable 3,400 January 30 Cash 11.000 10,000 Treasury stock Additional paid-in capital 1,000 a. Unpaid utilities for the month of January are $7,900 b. Supplies at the end of January total $6,800 C. 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 $11,700. d. Accrued income taxes at the end of January are $2,800 2. Record the adjusting entries on January 31, 2018 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit January 31 Utilities expense 7,900 Utilities payable 7.900 January 31 Supplies expense 6,800 Supplies 6,800 Depreciation expense Accumulated depreciation January 31 January 31 Income tax expense Income tax payable 3. Prepare an adjusted trial balance as of January 31, 2018 GRAND FINALE FIREWORKS Adjusted Trial Balance January 31, 2018 Accounts Debit Credit ash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Common stock Additional paid-in capital etained earnings ervice revenue Treasury stock vidends ividends payable alaries expense ties expense upplies expense epreciation expense ncome tax expense tilities payable ncome tax payable Totals 4. Prepare a multiple-step income statement for the period ended January 31, 2018 GRAND FINALE FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2018 Service revenue Supplies expense Salaries expense Utilities expense Depreciation expense Income before taxes Income tax expense Net income 5. Prepare a classified balance sheet as of January 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) GRAND FINALE FIREWORKS Classified Balance Sheet January 31, 2018 Assets Liabilities ash Accounts receivable Accounts receivable Supplies Accounts payable ividends payable ividends payable tilities payable ncome tax payable Total current liabilities Stockholders' Equity etained earnings Common stock Additional paid-in capital Treasury stock Total current assets vidends Total stockholders' equity Total liabilities and stockholders' equity Total assets View transaction list View journal entry worksheet Debit Credit Import a new list 1 Record the closing entry for revenue accounts. 2 Record the closing entry for expense accounts. 3 Record the closing entry for dividend account. Note:-Journal entry has been entered 7. Analyze the following for Grand Finale Fireworks a-1. Calculate the return on equity for the month of January. Return on Equity Ratio Choose Denominator Choose Numerator Returm on Equity Ratio Return on equity a-2. If the average retum on equity for the industry for January is 2.6%, is the company more or less profitable than other companies in the same industry? More profitable Less profitable b. How many shares of common stock are outstanding as of January 31, 2018 Number of common stock outstandin 1. Calculate earnings per share or he and divide the total by 2.) on of Januar (Hint To Calculate average shares o common stock outstanding take the beginning shares outstanding plus e endi shares outstanding Earnings Per Share Choose Numerator Choose Denominator Earnings Per Share Earnings Per Share c-2. If eanings per share was $2.40 last year (i.e., an average of $0.20 per month), is earnings per share for January 2018 better or worse than last year's average? Better O Worse On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: DebitCredit 44,400 47,900 9,200 81,000 Cash Accounts Recelvable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Pald-In Capital Retalned Eamings $ 10,700 16.300 17,000 97000 41.500 Totals $182.500 $182,500 During January 2018, the following transactions occur January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000 January 9 Provide services to customers on account, $19,300. January 10 Purchase additional supplies on account, $6,600 January 12 Repurchase 1,200 shares of treasury stock for $20 per share January 15 Pay cash on accounts payable, $18,200 January 21 Provide services to customers for cash, $50,800. January 22 Receive cash on accounts receivable, $18,300. January 29 Declare a cash dividend of S0.20 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 500 shares of treasury stock for $22 per share January 31 Pay cash for salaries during January. $43,700 JanuaryU2Cash 44,100 Common stock 2,100 Additional paid-in capital 42,000 January 09 Accounts receivable 19,300 Service revenue 19,300 January 10 Supplies 6,600 Accounts payable 6,600 4 January 12 Treasury stock 24,000 Cash 24,000 5 January 15 Accounts payable 18,200 Cash 18,200 January 21 Cash 50,800 Service revenue 50,800 January 22 Cash 18,300 Accounts receivable 18,300 January 29 Dividends 3,400 Dividends payable 3,400 January 30 Cash 11.000 10,000 Treasury stock Additional paid-in capital 1,000 a. Unpaid utilities for the month of January are $7,900 b. Supplies at the end of January total $6,800 C. 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 $11,700. d. Accrued income taxes at the end of January are $2,800 2. Record the adjusting entries on January 31, 2018 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit January 31 Utilities expense 7,900 Utilities payable 7.900 January 31 Supplies expense 6,800 Supplies 6,800 Depreciation expense Accumulated depreciation January 31 January 31 Income tax expense Income tax payable 3. Prepare an adjusted trial balance as of January 31, 2018 GRAND FINALE FIREWORKS Adjusted Trial Balance January 31, 2018 Accounts Debit Credit ash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Common stock Additional paid-in capital etained earnings ervice revenue Treasury stock vidends ividends payable alaries expense ties expense upplies expense epreciation expense ncome tax expense tilities payable ncome tax payable Totals 4. Prepare a multiple-step income statement for the period ended January 31, 2018 GRAND FINALE FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2018 Service revenue Supplies expense Salaries expense Utilities expense Depreciation expense Income before taxes Income tax expense Net income 5. Prepare a classified balance sheet as of January 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) GRAND FINALE FIREWORKS Classified Balance Sheet January 31, 2018 Assets Liabilities ash Accounts receivable Accounts receivable Supplies Accounts payable ividends payable ividends payable tilities payable ncome tax payable Total current liabilities Stockholders' Equity etained earnings Common stock Additional paid-in capital Treasury stock Total current assets vidends Total stockholders' equity Total liabilities and stockholders' equity Total assets View transaction list View journal entry worksheet Debit Credit Import a new list 1 Record the closing entry for revenue accounts. 2 Record the closing entry for expense accounts. 3 Record the closing entry for dividend account. Note:-Journal entry has been entered 7. Analyze the following for Grand Finale Fireworks a-1. Calculate the return on equity for the month of January. Return on Equity Ratio Choose Denominator Choose Numerator Returm on Equity Ratio Return on equity a-2. If the average retum on equity for the industry for January is 2.6%, is the company more or less profitable than other companies in the same industry? More profitable Less profitable b. How many shares of common stock are outstanding as of January 31, 2018 Number of common stock outstandin 1. Calculate earnings per share or he and divide the total by 2.) on of Januar (Hint To Calculate average shares o common stock outstanding take the beginning shares outstanding plus e endi shares outstanding Earnings Per Share Choose Numerator Choose Denominator Earnings Per Share Earnings Per Share c-2. If eanings per share was $2.40 last year (i.e., an average of $0.20 per month), is earnings per share for January 2018 better or worse than last year's average? Better O Worse