Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,700 46,500 8,500 74,000 $10,000 15,600 10,000 90.000 47,100 $172,700 $172,700 During January 2021, the following transactions occur January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide services to customers on account, $16,600. January 10 Purchase additional supplies on account, $5,900. January 12 Purchase 1,200 shares of treasury stock for $24 per share. January 15 Pay cash on accounts payable, $12,500. January 21 Provide services to customers for cash, $50, 100. January 22 Receive cash on deconta receivable, $17.600. January 29 Declare a cash dividend of 50.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 10,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) Jancary 30 Rosell 600 shares of treasury stock for $26 per share. January 31 Pay cash for salaries during January. $43.000. The following information is available on January 31, 2021 a. Unpaid utilities for the month of January are $7.200. b. Supplies at the end of January total $6.100. 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 $11,000 d. Accrued income taxes at the end of January are $2,100. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet Record issuance of an additional 2,200 shares of $1 par value common stock for $44,000. Note: Enter debits before credits Date Account Title Credit Debit 44,000 Jan 02 Cash Common Stock Additional Paid-in Capital [ 2.200 41,800 Record entry Clear entry View general journal appear for each account, based on your selection. Adjusted General Ledger Account Cash Accounts Receivable Debit Credit Date Debit Credit Balance 46.500 44,000 Jan 09 16.600 63.100 45,500 28.800 Jan 22 17,600 Date Dec 31 Jan 02 Jan 12 Jan 15 Jan 21 Jan 22 Jan 30 Jan 31 Balance 43.700 87,700 58.900 41,400 91,500 109,100 124,700 81,700 50.100 17,600 15,600 43,000 Supplies Equipment Debit Date Debit Credit Credit Balance Date Dec 31 Dec 31 74,000 Balance 8,500 14.400 6,100 5,900 8,300 Accumulated Depreciation Debit Credit Accounts Payable Debit Credit Date Balance Date 10.000 Jan 31 Balance 15,600 21,500 4,000 Jan 10 5,900 Jan 15 17,500 Adjusted Grand Finale Fireworks Trial Balance January 31, 2021 Account Title Credit Debit 81,700 45,500 6,100 74,000 11,750 4,000 7,200 2,100 2,200 12.200 PCash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable - Utilities Payable Income Tax Payable Dividends Payable Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Dividends Service Ravenue Depreciation Expense Supplies Expense Salaries Expense Utilities Expense income Tax Expense Total 14,400 133,000 47,100 2,200 66,700 1.750 8,300 43,000 7.200 2,100 286,250 $ $ 286, 250 General Journal General Ledger Requirement Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Adjusted -Book Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 66,700 Print Service Revenue $ 66,700 Total Revenue Supplies Expense Salaries Expense 8,300 43,000 7200 1,750 Utilities Expense Depreciation Expense Total Operating Expenses Income Before Taxes Income Tax Expenses 60,250 6,450 2,100 4.350 $ Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Adjusted Grand Finale Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Cash Accounts Receivable Supplies 81.700 45,500 6,100 Current Liabilities: Accounts Payable Income Tax Payable Dividends Payable Income Tax Payable 10.400 Total Current Assets Noncurrent Assets 133,300 Total Current Liabilities Stockholders' Equity 740007 Common Stock (11,750) Additional Paid-in Capital Equipment 12200 Accumulated Depreciation Treasury Stock 133,000 (14,400) 49 250 Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Euty 180050 190 450 $ 195 550 S 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 is the company more or less profitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 20212 The number of common shares outstanding as of January 31, 2021 is (c) Calculate samnings 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 utstanding and divide the total by 2.) If earnings per share was $3.60 last year i.e., an average of $0.30 per month), is earnings per share for January 2021 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2021 better or worse than last year's average?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Prepare for a successful job interview.

Answered: 1 week ago

Question

Describe barriers to effective listening.

Answered: 1 week ago

Question

List the guidelines for effective listening.

Answered: 1 week ago