On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: During January 2021, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par vatue common stock for $44,000. January 9 Provide services to customers on account, $15,100. January 10 Purchase additional supplies on account, $5,200. January 12 Repurchase 1,100 shares of treasury stock for $18 per share. January 15 Pay cash on accounts payable, $16,880. January 21 Provide services to customers for cash, $49,400. January 22 Receive cash on accounts receivable, $16,900. January 29 Declare a cash dividend of $0.40 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Freedon Fireworks had 13, 00e shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Reissue 900 shares of treasury stock for $20 per share. January 31 Pay cash for salaries during January, \$42,30e. The following information is available on January 31,2021 . 1. Unpaid utilities for the month of January are $6,500. 2. Supplies at the end of January total $5,400. 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 $10,300. 4. Acerued income taxes at the end of January are $2,300. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as item5 1-10) 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 11-14). 3. Review the adjusted 'Trial Balance' as of January 31,2021 , in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, 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. General Ledger Account Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-ciosing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Prepare an income statement for the period ended January 31,2021 . Choose the appropriate accounts company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each a selection. Freedom Fireworks Classified Balance Sheet January 31, 2021 Using the information from the requirements above, complete the 'Analysis'. (Roupd "Return on Equity" value to 1 decimal plac "Earnings per share" value to 2 decimal places.)
