Question
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 42,800 Accounts Receivable 44,700
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 42,800 | ||||
Accounts Receivable | 44,700 | |||||
Supplies | 7,600 | |||||
Equipment | 65,000 | |||||
Accumulated Depreciation | $ | 9,100 | ||||
Accounts Payable | 14,700 | |||||
Common Stock, $1 par value | 11,000 | |||||
Additional Paid-in Capital | 81,000 | |||||
Retained Earnings | 44,300 | |||||
Totals | $ | 160,100 | $ | 160,100 | ||
During January 2021, the following transactions occur:
January | 2 | Issue an additional 2,000 shares of $1 par value common stock for $40,000. | ||
January | 9 | Provide services to customers on account, $14,000. | ||
January | 10 | Purchase additional supplies on account, $5,000. | ||
January | 12 | Purchase 1,100 shares of treasury stock for $19 per share. | ||
January | 15 | Pay cash on accounts payable, $16,600. | ||
January | 21 | Provide services to customers for cash, $49,200. | ||
January | 22 | Receive cash on accounts receivable, $16,700. | ||
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: Grand Finale Fireworks had 11,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) | ||
January | 30 | Resell 800 shares of treasury stock for $21 per share. | ||
January | 31 | Pay cash for salaries during January, $42,100. |
The following information is available on January 31, 2021.
- Unpaid utilities for the month of January are $6,300.
- Supplies at the end of January total $5,200.
- 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 $10,100.
- Accrued income taxes at the end of January are $2,100.
journal entry worksheet
1-Record issuance of an additional 2,000 shares of $1 par value common stock for $40,000.
2-Record the providing of services to customers on account, $14,000.
3-Record purchase of additional supplies on account, $5,000.
4-Record purchase of 1,100 shares of treasury stock for $19 per share.
5-Record payment of cash on accounts payable, $16,600.
6-Record the providing of services to customers for cash, $49,200.
7-Record the receipt of cash on accounts receivable, $16,700
8-Record the declaration of a cash dividend of $0.40 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 11,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)
9-Record the reselling of 800 shares of treasury stock for $21 per share.
10-Record the payment of cash for salaries during January, $42,100.
11-Unpaid utilities for the month of January are $6,300. Prepare the adjusting entry for utilities
12-Supplies at the end of January total $5,200. Prepare the adjusting entry for supplies
13-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 $10,100. Prepare the adjusting entry for depreciation.
14-Accrued income taxes at the end of January are $2,100. Prepare the adjusting entry for income taxes.
15-Record the closing entry for revenue.
16-Record the closing entry for expenses.
17-Record the closing entry for dividends.
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