On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings Totals Debit Credit $ 44,400 47,900 9,200 81,800 $ 19,700 16, 303 17. eee 97. eee 41,500 $182,500 $182,500 During January 2021, the following transactions occur January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,080. January 9 Provide services to customers on account, $19,300. January 10 Purchase additional supplies on account, $6,608. January 12 Repurchase 1, 200 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $18, 290. 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 $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Freedom Fireworks had 17,eee shares outstanding on January 1, 2021, 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. The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $7,900. 2. Supplies at the end of January total $6,800. 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 $11,700. 4. Accrued income taxes at the end of January are $2.800. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 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. On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings Totals Debit Credit $ 44,400 47,900 9,200 81,800 $ 19,700 16, 303 17. eee 97. eee 41,500 $182,500 $182,500 During January 2021, the following transactions occur January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,080. January 9 Provide services to customers on account, $19,300. January 10 Purchase additional supplies on account, $6,608. January 12 Repurchase 1, 200 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $18, 290. 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 $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Freedom Fireworks had 17,eee shares outstanding on January 1, 2021, 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. The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $7,900. 2. Supplies at the end of January total $6,800. 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 $11,700. 4. Accrued income taxes at the end of January are $2.800. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 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.
