Question
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,300 Accounts Receivable 47,700
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts Debit Credit Cash $ 44,300
Accounts Receivable 47,700
Supplies 9,100
Equipment 80,000
Accumulated Depreciation $ 10,600
Accounts Payable 16,200
Common Stock, $1 par value 16,000
Additional Paid-in Capital 96,000
Retained Earnings 42,300
Totals $ 181,100
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, $18,800. January 10 Purchase additional supplies on account, $6,500. January 12 Purchase 1,100 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $18,100. January 21 Provide services to customers for cash, $50,700. January 22 Receive cash on accounts receivable, $18,200. 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: Grand Finale Fireworks had 16,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 700 shares of treasury stock for $21 per share. January 31 Pay cash for salaries during January, $43,600. The following information is available on January 31, 2021. Unpaid utilities for the month of January are $7,800. Supplies at the end of January total $6,700. 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 $11,600. (Hint: Start with the cost of the Equipment shown at the top.) Accrued income taxes at the end of January are $2,700.
Question: Record the declaration of a cash dividend of $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 16,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)
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